PhRMA objects to House bill

Pharmaceutical Research and Manufacturers of America (PhRMA) is taking issue with language in the House war supplemental bill that would prevent patent settlements between brand-name and generic drugmakers.

The settlements, often referred to as "pay for delay" deals, have attracted negative attention for allowing brand-name pharma firms to pay generics companies to delay bringing lower-cost versions of brand-name drugs to market. However, PhRMA maintains that the settlements are "pro-consumer" and "often bring generics to market years before patent expiration."

"PhRMA continues to believe that legislation that would impose a blanket ban on certain types of patent settlements or otherwise prevent them could decrease the value of patents and reduce incentives for future innovation of new medicines," the trade group said in a statement.

"The courts and enforcement agencies like the Federal Trade Commission (FTC) are in the best position to review these settlements on a case-by-case basis to ensure that they are not harmful to competition," PhRMA stressed.

"By imposing a general ban or imposing harsh disincentives, pending legislation would effectively remove the decision-making process from this appropriate venue."

The pending bill is intended to address supplemental appropriations for the wars in Iraq and Afghanistan. However, such bills frequently end up with other provisions attached to them.