The President plans to reduce patent protection on biologics from 12 years to seven and end ‘pay-for-delay’ deals with generics firms in an attempt to save approximately $11 billion in 10 years.
But John Castellani, head of PhRMA (pictured), says the proposals “would diminish crucial incentives for future US medical innovations”.
Mr Castellani claims that if the proposal to reduce patent protection was introduced it would offer “less data protection for new, innovative biologics than is currently bestowed in Europe”.
He added that “patent settlements are a vital aspect of a patent owner’s ability to protect intellectual property” and without these, “innovators’ defence of their patents in court could keep generics from being available to patients for years”.
“While we understand the need to reduce the deficit, policies such as these represent the wrong approach,” he said. “Instead, our country needs to retain and extend policies that promote the growth of private-sector R&D investment and secure our sector’s future.”
Ending deals on the delay of generics entering the market could see the US Federal Trade Commission have the power to block any future controversial agreements between pharma and generic manufacturers.