When Generics Are Kept Off The Market, Drugs Come At High Cost

A recent U.S. Supreme Court ruling in favor of generic drugs might help lower the cost of pharmaceuticals.

The Wisconsin Public Interest Research Group (WISPIRG), however, says legislation is needed too.

Last month, the Supreme Court opened up the door to lawsuits against brand name drug makers that try to shut out generic competitors. These rival companies that offer generics are paid to delay introduction of their drugs. A WISPIRG report tallies up the cost of this practice and what it means for consumers who can only access patented blockbuster medications.

“The report shows Wisconsinites with cancer, heart disease epilepsy and many other conditions have been forced to pay an average of as many as 10 times more than necessary for these 20 blockbuster drugs,” says Bruce Speight, executive director of WISPIRG.

Some of those drugs, like Lipitor for high cholesterol, are off patent and cheaper alternatives are now available. Other popular drugs in the report don’t have generic options because companies who make those drugs are paid to keep them off the market.

“The reason we’re doing this report is to highlight the cost to consumers, the need to crack down the practice of pay-for-delay, and to urge the Senate to take action,” says Speight.

One of those Senate bills is sponsored by Sen. Amy Klobuchar, D-Minn., and Sen. Chuck Grassley, R-Iowa. It makes pay-for-delay deals unlawful, declaring them anti-competitive.