Generic Drugs Foray into US Markets
A senate bill to encourage the generic drug market in Washington was recently the hot topic of discussion. The products would obtain an easier path to the US markets if the bill is dully accepted in the senate by all. The bill seemingly has the support of the republican senator as well. The senator, David Vitter also proposed the introduction of the bill amongst the senate members for its due acceptance. This would also help amend the 1984 Hatch Waxman act which was made to empower the generic companies by allowing them to challenge the pharmaceutical firms if the latter was found to be weak. If a generic company after challenging a pharmaceutical firm won the case it was entitled to a 180 day window of exclusively selling the generic products. But this also came with a price at times because the generic companies had to settle a patent lawsuit which kept them away from the market for a quite long period of time. In some cases the brand name companies used to pay these generic firms to delay their production. This was referred to as the pay for delay by the Federal Trade Commission.
The Bingaman Vitter bill would allow any generic firm to enter the market if it successfully challenges any drug firm. They all believe that a major flaw exists with the current law and would want to bring about a change in it by introducing this new bill, which they think could provide the best solution to the flaw.
The FTC claimed that there were approximately twenty eight pay for deals companies in the fiscal year of 2011 that resulted in a much slower generic entry into the United States market. The FTC united states agency also stated that the pay for deals also were a form of violation of the antitrust law in case the brand name companies paid the generic firms in order to keep them out of the market for personal benefits. The FTC has always received a mixed response from the courts when opposing the deal.
Generic drugs usually are available for a much lower price as compared to its other counterparts. These generic drugs can cost up to a value that is ninety per cent lesser in value as compared to the brand name drugs available in the markets. Even more recently senators Herb Kohl and Chuck Grassley have appealed to cut down the US budget deficit in order to ban the pay for deals.