Tag: generic drug

Generic Drug Bill Held Up

Disclosure: I have represented and represent both brand name and generic drug manufacturers. I know of no conflict with my representations and my position on this issue.

The problem with lobbyists is not with their lobbying, it is with our political system that lets our representatives get away with this type of behavior:

Legislation aimed at speeding the availability of cheaper generic drugs has stalled in Congress in the face of major lobbying by the drug industry. The Senate bill would ban most settlements known as “reverse payments,” in which a brand-name company pays a generic manufacturer to delay the introduction of the generic drug. The Federal Trade Commission, which has called on Congress to take action, says such settlements could cost American consumers billions of dollars.

. . . “Lobbyists have a lot of influence in Washington,” said the bill’s sponsor, Sen. Herb Kohl, who chairs the Senate Judiciary subcommittee on antitrust, competition policy and consumer rights. “If we can just get this to a vote, it will be pretty hard for people to vote against it. A vote against this is a vote against consumers.” . . .

It is important to understand that the need for such a law is due to some atrocious antitrust decisions by the Supreme Court. The issue is a bit complex, but the basics of it is that the Supreme Court has adopted the unproven thesis of conservative economists that intrabrand competition (between retailers of the same brand product) has no effects on market competition and that it is only interbrand competition (competition between differently branded products) that promotes competition. Anyone who has gone shopping at a Target, Wal-Mart, CostCo or Walgreens, knows this is a sham. But such is the effect of 7 Republican appointees to the Court. The antitrust laws have been gutted by the Court in the past 20 years.