WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH) joined AARP Executive Vice President Nancy A. LeaMond to discuss the need to pass health reform legislation that brings affordable, generic versions of biologic drugs to consumers.

“Health reform is about protecting the interests of middle class families, not the windfall profits of big drug companies,” Brown said. “Biogenerics would save consumers and businesses billions of dollars by putting a stop to open-ended monopolies that produce windfall profits for drug makers. We have a choice between locking in excessive monopoly periods for big Pharma or helping more patients get access to cheaper drugs. I hope my colleagues in the Senate will put consumers first.”

“Expanding access to affordable, generic biologic drugs is a critical concern for our members,” said Nancy A. LeaMond, Executive Vice President of AARP. “We are deeply disappointed by the HELP Committee’s decision on biologics. We will continue to work with Sen. Brown to improve access to live saving drugs.”

Last night, the Senate Health, Education, Labor and Pensions (HELP) Committee passed an amendment granting 12 years of monopoly to brand-name drug manufacturers. That means consumers would not be able to receive generic versions of biologic drugs— which treat conditions such as cancer, Parkinson’s, diabetes, rheumatoid arthritis, Alzheimer’s, and multiple sclerosis – for 12 years following FDA approval of the brand-name version. These drugs are up to 22 times more expensive than traditional prescription drugs and are expected to make up 50 percent of the pharmaceutical marketplace by 2020, if not sooner.

Brown and AARP discussed why a shorter exclusivity period is needed to promote innovation and connect Americans with more affordable, generic biologic drugs. President Obama has called for a shorter exclusivity period, and the only non-industry study cited in the debate says monopoly periods of 12 years or more are unnecessary and will not spur innovation.

Brown discussed why the debate over these generic drugs is shaping up to be a battle between the interests of consumers and the windfall profits of large pharmaceutical companies. Video footage of Brown speaking on this issue at last night’s HELP session can be found here.

“Drug companies should be able to recoup their research and development costs, but they are not entitled to open-ended monopolies and unlimited, windfall profits,” Brown said. “The millions of people who depend on biologic drugs, and the millions more stuck paying ever higher insurance premiums, deserve better.”

Brown’s amendment, which was endorsed by AARP, would have created an approval process for more affordable, generic biologics while allowing drug makers a generous 7-year period of market exclusivity. President Obama’s budget estimated that an exclusivity period of 7 years would save around $10 billion over ten years.

The amendment that passed last night would permit 12 years of market exclusivity, despite the fact that the Federal Trade Commission (FTC) has stated that exclusivity periods longer than 12 years would actually discourage innovation by making the continuous development of new products less important to the profitability of biologics manufacturers.

Biologic drugs cost up to 22 times more than regular prescription drugs. Herceptin, for example, is a common biologic used to treat the more than 192,000 new breast cancer cases diagnosed in the U.S. each year. A year of Herceptin treatment costs an average of $48,000. The average median income in Ohio, meanwhile, was $46,597 in 2007.

“This is about helping cancer patients afford their treatments,” Brown said. “This is about ensuring that seniors in Ohio, and across the country, can afford their Alzheimer’s medication. This is about preventing any family from having to choose between putting food on the table and paying for the drugs they need to survive.”

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