New Bio-Tech Bill Poses Threat to the Industry
Large pharmaceutical companies are facing a string of legislation, which could potentially have dramatic consequences on their future profitability, and open the door to one of the industry`s biggest threats ? generic drug manufacturers. The proposed legislation presented by Senator Hillary Clinton, a Democratic presidential candidate, Thursday, and a group of legislators from both parties, will allow, if accepted into law, generic drug manufacturers to manufacture cheep versions of bio-tech medication.
Opponents of the law say it could potentially damage the motivation of the bio-tech industry to search for new discoveries. But determined to lower healthcare coasts the group is pushing forwards with the bill, although a similar bill failed to pass through Congress, when Congress was controlled by a Republican majority. But many analysts feel that the pressure from voters dismayed by the high price of medication may push the bill through Congress this time.
A separate bill, making it illegal for drug manufacturers to pay off generic drug manufacturers not to enter into competition, is on its way to attain the required support of Congress. The battle between generic drug manufactures and name-brand bio-tech companies is heating up in the political sphere, which is to decide what exactly can be regarded as intellectual property in the bio-tech industry, and in what cases generic drugs may be produced. The more Congress allows through law for generic drugs to hit the market the lower drug prices will get. On the other hand, the lower drug prices get, the development of new bio-tech technology will become less profitable, which may hinder bio-tech research.
Related News:
