WASHINGTON, DC — U.S. Sen. Sherrod Brown (D-OH) today spoke on the Senate floor regarding legislation to improve access to generic biologic drugs. A video of the speech can be viewed below.

Biologic drugs, which treat cancer, Parkinson’s, diabetes, rheumatoid arthritis, Alzheimer’s, and multiple sclerosis, are expected to make up 50 percent of the pharmaceutical marketplace by 2020. Despite this, there is no approval process for generic biologics, leading to monopolies which cause high drug prices and stifle innovation. 

Senator Brown speaks with Senator Dodd (Conn.) at the mark-upBrown is working to pass an approval process for generic biologics in health reform legislation that limits the monopoly period of name-brand manufacturers. A copy of Brown’s floor statement, as prepared for delivery, follows.

This week, Congress is debating whether to broaden access to affordable, generic drugs for millions of Americans. Let me explain how access to generic drugs would benefit millions of Americans who can’t afford crushing prescription drug costs.

Sergio from Rocky River wrote to me about how he and his family lost their health insurance last year and is heavily buried with debt. His youngest son has Type 1 Diabetes, his wife has severe Asthma, and Sergio had quadruple heart by-pass surgery along with surgeries to repair a hernia and treatment for back and knee injuries all in the last three years.

Sergio and his family have cut back on the medications and stopped going to the doctor because they can’t afford the $35,000 in outstanding medicals bills – much of it in prescription drug costs. Sergio writes that his family walks on “eggshells” each day hoping they don’t get sick and slide further into debt.

For far too long, Americans like Sergio have struggled with the exorbitant costs of prescription drugs. For far too long, soaring drug costs meant seniors were forced to choose between eating and taking their medicine.

I heard these stories when I traveled with seniors from Ohio to Canada to buy affordable prescription drugs.

We now have the opportunity to make affordable generic drugs more accessible for our seniors and our nation’s middle class.

Health care reform must broaden access to generic alternatives to the most expensive kinds of prescriptions drugs, known as biologics. 

Failing to do so is not just bad policy; it’s irresponsible on our part.

Countless Americans can’t afford expensive brand name drugs, known as biologics. These drugs provide promise and hope to those suffering from devastating diseases and chronic illnesses – including cancer, Parkinson’s, diabetes, Alzheimer’s, and MS.

For example, annual treatment for breast cancer with the biologic drug Herceptin costs $48,000 a year and the annual treatment for rheumatoid arthritis with Remicade costs approximately $20,000 a year. 

These drugs are simply too expensive for many people to afford. Liz, from Brecksville, is a director of a breast cancer advocacy group in Northern Ohio and wrote to me that many of her members and clients face impossible financial barriers after being diagnosed with breast cancer and need treatment. Liz works with breast cancer patients who face excessive co-pays and deductibles for prescription drugs – often with 10 year pre-existing condition restrictions.

That’s why we must provide broader access to generic drugs to help lower prescription drug costs for millions of Americans. Ensuring a pathway for generic drugs and breaking the monopoly that pharmaceutical companies have on brand name drugs can make prescription drugs affordable for Americans who need them.

By setting a reasonable period of exclusivity for many brand name drugs, we will speed up the generic approval process and speed up cost savings for Ohio families.

It’s estimated that biologic drugs – again, those that help treat cancer, Parkinson’s, diabetes, Alzheimer’s, and MS – will make up 50 percent of the pharmaceutical market by 2020. These prescription drugs cost anywhere from $10,000 a year to $200,000 a year. We’re not saying that prescription drug companies don’t deserve a chance to recoup the $1.2 billion they spend on research and development. 

But, as you can see from this chart, one year of sales – with no competition from generics – often means multiple billions of dollars in revenue. Invariably by year two or three, these drug companies have recouped R&D investment and then some.

In fact, sales in 2008 for the average biologic – not just the blockbusters – totaled over $666 million. That means it takes less than two years for the average brand-name biologic to recoup R&D costs.
                                                                                                                               
So why then are some of my colleagues advocating for a 12-year monopoly period? Good question. The President says this is too long. The Federal Trade Commission says this is too long. Nearly everyone – including insurance companies, patient groups, and consumer groups – say this is too long.

Everyone, that is, except the drug companies. So, let’s be clear: This is a fight between pharmaceutical companies looking to make lucrative profits and patients in need of affordable drugs.

I read in yesterday’s Washington Post how the pharmaceutical industry is spending millions of dollars a day trying to influence the outcome of health care reform legislation.
Millions of dollars a day are spent to prevent generic drugs – affordable medicine – from making its way to Ohio’s seniors, middle class families, and to patients who can’t afford brand name drugs.

But we can’t let special interests or political maneuvering delay making affordable prescription drugs more available to millions of Americans.

We are on the cusp of a meaningful, fundamental reform of our health care system. We must ensure access to generic drugs – that reduces costs and improves quality of care for millions of Americans – is part of this historic moment.

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