Sneak Prescription Drug Patent Extension

[James Love <love@cptech.org>]

Subject: Public Citizen press release
       Date: Mon, 12 Oct 1998 16:21:00 -0400
      From: Booth Gunter <bgunter@citizen.org>
 Organization: Public Citizen
        To: bgunter@citizen.org (Booth Gunter)

For Immediate Release:  
Friday, Oct. 9, 1998

Sneak Prescription Drug Patent Extension in Appropriations Rider Would 
Increase Drug Prices for Seniors

        WASHINGTON, D.C. -- An 11th-hour attempt to gain patent extensions for 
Claritin and Relafen, two of the top-selling prescription drugs in the U.S., 
and five other drugs would cost millions for consumers, taxpayers and all 
other health care payers.  Among the hardest hit would be seniors on 
fee-for-service Medicare who pay out-of-pocket for outpatient prescription 
drugs.

        The measure, sponsored by Sen. Frank Lautenberg (D-N.J.), is proposed 
to be added as a rider to the 1998 Agriculture Appropriations bill. It would 
allow manufacturers of seven prescription drugs to petition the Patent and 
Trademark Office (PTO) for additional patent term extensions beyond those 
permitted by the 1984 Waxman-Hatch Act.  It would benefit seven brand-name 
prescription drugs. The best-selling antihistamine Claritin, with 1997 sales 
of $869 million, and the top anti-arthritis drug Relafen ($419 million 1997 
sales), would be the big winners.  The other drugs are Dermatop (for itchy 
skin), Penetrax (urinary tract infection), Eulexin (prostate cancer), 
Cardiogen-82 (diagnostic imaging agent) and Nimotop (used after head 
trauma).

        "Seniors on fixed incomes could pay dearly for this `second bite at the 
patent apple' deal for big drug companies," said Dr. Sidney M. Wolfe, 
director of Public Citizen's Health Research Group.  "Congress should reject 
this attempted end run on the Waxman-Hatch Act's careful balance between 
promoting innovation and ensuring that consumers have timely access to 
affordable medicines."

        Studies have shown that generic drugs sell for 30 percent to 60 percent 
less than brand-name drugs.  A spring 1998 survey of selected Washington, 
D.C., pharmacies found the retail price of Claritin to be $68.40 a month and 
that of Relafen, $74.40.  Availability of a generic version would save this 
area's consumers from $246 to $492 a year for Claritin and from $268 to $535 
a year for Relafen.  Total annual savings to all health care payers would 
range from $261 million to $522 million for Claritin, and from $126 million 
to $252 million for Relafen.


        "Claritin's manufacturer, Schering-Plough, had 1997 profits of $1.2 
billion, a 17 percent profit rate," Wolfe said. "It is unconscionable that 
seniors on fixed incomes could be required to pay hundreds of dollars more a 
year to further boost the company's bottom line because Congress granted the 
company a special procedure to pursue another Claritin patent extension at 
the 11th hour in a rider to an appropriations bill."

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