Drug companies manipulate a US law to prevent the production of cheaper drugs
Fifteen US states have filed a US $100 million lawsuit against Aventis, a Franco-German drug group, and Andrx Pharmaceuticals Incorporation, an us generic drug maker. The suit alleges that Aventis paid Andrx almost US $90 million to delay the introduction of a cheaper generic version of one of Aventis' best-selling heart drugs, Cardizem CD.
To protect themselves from the generic manufacturers, the patent holders have the legal sanction to file an infringement suit against the generic drug manufacturers when they file an application with the fda to market their products. This automatically delays the release of the generic version by 30 months. Another way of protecting themselves, is the misuse of the Hatch-Waxman Act. As per the act once the generic drug manufacturer gets an approval from the FDA for marketing its product, it holds exclusive rights in the market for a period of 180 days. Even other generic drug makers cannot enter the market during this 180-day period. The patent holders then get into an agreement with the generic drug manufacturers under which they agree not to launch the cheaper drug in the market in exchange for financial incentives.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.