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GPhA Says “New Trade Policy for America” Fosters Pharmaceutical Innovation While Increasing Global Access to Affordable Medicines

ARLINGTON, VA, May 31, 2007-- Generic Pharmaceutical Association (GPhA) President and CEO Kathleen Jaeger made the following statement today as Congress considers the “New Trade Policy for America”:

“This new bipartisan trade policy is proof that a balance between fostering drug innovation and ensuring access to affordable medicines can be achieved. The ‘New Trade Policy for America’ is an important step forward in ensuring that our nation’s Free Trade Agreements reflect U.S. law and ensure domestic and international access to affordable medicines.

“This new bipartisan agreement sends the message that our Free Trade Agreements should not unduly block generic competition abroad or include measures that delay timely access to affordable medicines. For more than 20 years, the U.S. health care system has proven that bringing competition into the pharmaceutical marketplace results in lower consumer costs without stifling innovation. This new trade policy recognizes that this balance can also be achieved abroad.

“For years, the brand pharmaceutical industry has been overreaching in Free Trade Agreements by succeeding in gaining more intellectual property rights than they have under U.S. law. This new policy simply makes Free Trade Agreements in Colombia, Panama and Peru consistent with U.S. law so that consumers in our trading partners will also benefit from access to more affordable medicines. Contrary to claims that it harms brand companies, the new framework merely tells them that they need to play by U.S. rules which have served the brands well for decades. It does nothing to hinder innovation and, in fact, brings other nations more in line with the research and development incentives pharmaceutical companies currently enjoy here in the United States.

“We greatly appreciate the efforts of Mr. Rangel, other Congressional leaders and the Administration to strike the right balance in our trade agreements and wish them success in drafting text that reflects this basic intent. While the ‘New Trade Policy for America’ affects Free Trade Agreements with Colombia, Panama and Peru, we urge Congress to continue to push for reform in future free trade agreements, such as Korea.”

GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk active pharmaceutical chemicals, and suppliers of other goods and services to the generic drug industry. Unbranded and branded generics represent 63% of the total prescriptions dispensed in the United States, but only 20% of all dollars spent on prescription drugs. For more information about the industry, visit http://www.gphaonline.org.

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