Kohl, Leahy Introduce Bill
To Stop Frivolous Citizen Petitions,
Speed Generic Drug Approval
WASHINGTON (Thursday, Sept. 28)
– In an effort to increase generic drug availability, U.S. Senators Herb
Kohl (D-WI) and Patrick Leahy (D-VT) have introduced legislation to
prohibit brand name drug companies from abusing the Food and Drug
Administration’s (FDA) “citizen petition” review process. Citizen
petitions can delay the approval of a generic drug by months or years.
“Generics are a big part of the solution
to health care costs that are spiraling out of control,” Kohl said.
“While this citizen petition process was put in place for good reason,
in recent years it has been abused by big drug companies looking to
extend their product’s monopoly. We can’t sit back and do nothing while
these companies game the system and profit off of consumers and the
federal government.”
Leahy said, “The major drug companies have
found yet another way to game the system to keep lower-cost generics off
the shelves. They are misusing a law that was intended to protect
ordinary Americans, not corporate drug giants, and they are using it to
pick the public’s pockets. We are blowing the whistle on this practice,
and we are out to close this loophole to keep drug giants from using it
against consumers.”
One example of this practice can be seen
with the drug, Oxybutynin, a generic equivalent of Ditropan XL.
Ditropan’s patent owner, the Alza Corporation, submitted a citizen
petition to the FDA one month before its generic competitor, Ozybutynin
was expected to be released for sale. The FDA is now in month 13 of its
review of this petition. Mylan laboratories, the maker of Ozybutynin,
estimates that Ditropan XL generates more than $1.8 million in sales,
daily.
Of the 21 citizen petitions reviewed and
ruled upon by the FDA since 2003, 20 have been found to be without
merit. Of these, ten were identified as “eleventh hour petitions” --
those filed less than 6 months prior to the estimated entry date of the
generic drug – and none were found to have merit.
The Citizen Petition Fairness and Accuracy
Act of 2006 gives the Department of Health and Human Services (HHS) –
the FDA’s parent agency – the power to sanction those who abuse the
citizen petition process, or who file citizen petitions simply to keep
competition off the market. Possible sanctions include a fine up to one
million dollars, a suspension or permanent revocation of the right of
the violator to file future citizens’ petition, and a dismissal of the
petition. The bill also instructs HHS that all citizen petitions be
reviewed within six months of filing – putting an end to excessive
delays in bringing needed generic drugs to market.
Prescription drugs make up 11 percent of
national health care spending but are one of the largest and fastest
growing health care expenditures. The U.S. spent over $250 billion on
prescription drugs in 2005, with generics accounting for 56 percent of
the prescriptions but less than 13 percent of the costs. One study
estimates that every 1 percent increase in generic use could save $4
billion dollars.
Last June, Kohl and Leahy introduced
legislation, the Preserve Access to Affordable Generics Act (S. 3582),
to prohibit anti-competitive “payoff settlements” that keep generics off
pharmacy shelves. Payoff settlements occur when a brand name drug
company pays a generic drug maker to delay the sale of their competing
generic drug.
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