Obama Administration, Congress Intensify Opposition To Global Generic Drug Industry

WASHINGTON -- The Obama administration and members of Congress are pressing India to curb its generic medication industry. The move comes at the behest of U.S. pharmaceutical companies, which have drowned out warnings from public health experts that inexpensive drugs from India are essential to providing life-saving treatments around the world.

Low-cost generics from India have dramatically lowered medical costs in developing countries and proved critical to global AIDS relief programs; about 98 percent of the drugs purchased by President George W. Bush's landmark PEPFAR AIDS relief program are generics from India. Before Indian companies rolled out generic versions priced at $1 a day, AIDS medication cost about $10,000 per person per year.

But India's generic industry has also cut into profits for Pfizer and other U.S. and European drug companies. In response, these companies have sought to impose aggressive patenting and intellectual property standards in India, measures that would grant the firms monopoly pricing power over new drugs and lock out generics producers.

On Thursday, a House subcommittee held a hearing on international trade disputes with India that included testimony from American manufacturing and solar energy groups. Most of the event, however, was devoted to U.S. drug company Pfizer's complaints about Indian policies that have fostered the country's billion-dollar generics industry. The hearing followed Secretary of State John Kerry's trip to India earlier this week for the U.S.-India Strategic Dialogue, a major diplomatic mission.

Last week, a bipartisan group of 170 House lawmakers sent a letter to Kerry and President Barack Obama raising objections to India's patent system. But at Thursday's hearing, few seemed well-versed on intellectual property or public health issues.

"I first learned of this issue just a few short weeks ago from Pfizer, my largest employer in my district," said Rep. Fred Upton (R-Mich.), before asking Pfizer Chief Intellectual Property Officer Roy Waldron if his company had talked to the Obama administration about its concerns.

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http://www.huffingtonpost.com/2013/06/28/obama-generic-drugs_n_3513011.html