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Reuters

http://tinyurl.com/kp2gjn

Senate panel backs 12-year biotech drug shelter

Mon Jul 13, 2009 11:58pm EDT

By Richwine

WASHINGTON (Reuters) - Biotechnology medicines would be protected from

cheaper rivals for 12 years under a plan that cleared a U.S. Senate

committee on Monday.

The 16-7 vote in the Senate health committee was a victory for major

biotech

drugmakers such as Amgen Inc and Roche Holding AG. Manufacturers of

brand-name biotech drugs have been pushing for a period of 12 to 14

years

before generic copies of their medicines can win approval.

Generic drugmakers have backed proposals limiting the exclusivity

period to

five or seven years.

The Senate plan could change when the healthcare bill goes to the

floor for

a vote. Senators also will need to work out an agreement with the House,

where the issue is still being debated.

A key lawmaker, House Energy and Commerce Committee Chairman Henry

Waxman,

backs up to five years of protection.

Biotech medicines, or biologics, are made from living things and are

more

complicated to produce than traditional, chemical-based drugs. They

can cost

tens of thousands of dollars per year.

The drugs treat conditions ranging from anemia and rheumatoid

arthritis to

cancer. Examples include Roche's Herceptin and Avastin cancer

treatments,

and Amgen's Epogen and Aranesp anemia therapies.

Lawmakers working on an overhaul of the U.S. healthcare system are

crafting

plans to create a legal path for approval of cheaper copies of biotech

medicines. The exclusivity period for the brand-name versions has been

a key

sticking point.

Brand-name companies say they need an adequate period without

competition to

encourage companies to develop new medicines.

" A minimum of 12 years of data exclusivity establishes a fair and

reasonable

period to ensure continued biomedical innovation and provide the

benefits of

competition, " said Jim Greenwood, president of the Biotechnology

Industry

Organization, which represents brand-name biotech drugmakers.

The Senate panel's vote " marks a significant defeat for those who would

shortchange future breakthroughs and the hope for cures for some of

the most

devastating diseases by providing an abbreviated period of data

exclusivity, " Greenwood said.

The committee rejected a shorter period of seven years, the time the

White

House says strikes an appropriate balance between promoting innovation

and

providing competition. Seniors lobbying group AARP also backed seven

years.

" This unprecedented action strikes a huge blow to consumers at a time

when

many Americans are struggling to pay for the medicines they need, "

Kathleen

Jaeger, president of the Generic Pharmaceutical Association, said of the

Senate panel's action.

Companies aiming to sell copies of biologics include generic

drugmakers such

as Teva Pharmaceutical Industries Ltd and Mylan Inc.

(Editing by Walsh)

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