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In the latest scheme, one that is costing consumers billions of dollars,
drug companies are using American courts to stall the sale of generic
versions of some of their most popular products. Here's how it works: When a
drug's patent is about to expire, its maker tries to ward off competition by
filing frivolous lawsuits against anyone looking to make a low cost, and
perfectly legal, version of the pill. They don't really expect to win, but
the suit can delay the generic version from hitting the market for up to 30
months -- allowing the patent holders to rake in billions in additional,
competition-free sales. And the public gets to pay twice: We pay for
unnecessarily high-priced drugs, and we pay for the court system they're
exploiting to keep us paying the high price. Sens. John McCain and Charles Schumer have introduced a bill to put a stop to this outrageous abuse of our legal process. Originally considered a longshot, the legislation has gained momentum, helped by the support of a number of corporations that have recognized how this kind of patent thievery is costing them hundreds of millions of dollars in over-inflated health care costs. And in a recession, little things like hundreds of millions of dollars get noticed. Executives at General Motors, for instance, figured out that drug manufacturers' maneuvering to maintain market exclusivity on 5 top selling drugs -- including Paxil, Prilosec, and Wellbutrin -- after the patents had expired, had cost GM over $200 million.
For the first time, it's not just voiceless millions in Africa or poor people on Medicare that are feeling the sting of the drug companies' ability to bilk the system. It's powerful corporations that pay top dollar for receptive ears in Washington. |