TheOtherView
Opinions from around the country

With midterm elections right around the corner, President George W. Bush proposed pharmaceutical regulations Monday that would limit the ability of brand-name drug companies to delay the production of lower-cost generic drugs. As part of the pharmaceutical game, a loophole in the 1984 Hatch-Waxman Act gave brand-name drug producers bogus ways of extending their patents. An extension forces generic companies to stall their production of cheaper drugs.

“By this action, we’ll reduce the cost of prescription drugs in America by billions of dollars and ease the financial burden for many citizens,” Bush said of the proposed regulations. While his explanation may be accurate, there are other effects — some of which are harmful — that he neglected to mention.

In an industry like pharmaceuticals — one that determines many aspects of the economy — changing the rules of the game can have detrimental effects.

For example, look what happened to stem-cell researchers. Our government placed heavy regulations on their industry, which, in turn, pushed many of our best scientists to foreign laboratories. Our economy cannot afford to lose any more.

It is estimated that a new drug can cost as much as $800 million to develop and market. With associated costs so high, it is imperative pharmaceutical producers receive incentives, if not rewards, for their risks. So when patent protection is on the list of topics to re-regulate, it provides less motivation for brand-namers to incur billion-dollar costs.

As part of an ongoing struggle to improve the lives of American citizens, Bush and his administration must recognize other options in their pharmaceutical endeavors. Yes, eliminating the clause that unfairly extends patents is fine. But also look toward other related industries to lessen the burden of increased drug regulations. A possible solution might be surfaced in the health insurance industry.

If Bush’s concerns are motivated by reducing prescription costs, then maybe the answer lies in individuals’ health plans.

This is a staff editorial from the Daily Targum at Rutgers University.
This editorial was distributed by U-Wire.