Drug costs threaten patent protection


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News that prescription medicines have become the fastest-growing sector of healthcare outlay in the US will add strength to proposals by the Bush Administration to ease regulations on


generic production of brand-name drugs. According to a survey released in December by Mercer Human Resource Consulting, the cost of American healthcare rose by 15% last year, the largest


increase since 1990. Individuals paid an average of $10 for generic drugs and $35 for brand-name drugs.


The previous month, US Secretary of Health and Human Services Tommy Thompson announced plans to eliminate legislation that allows pharmaceutical companies to invoke a 30-month delay on


generic copies being produced. This rule gave innovator drug companies the chance to protect their patent rights in court. However, companies have frequently invoked multiple 30-month


delays, indefinitely delaying approval of generic drugs. Thompson's new rule would end that possibility.


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