[Congressional Record Volume 146, Number 111 (Tuesday, September 19, 2000)]
[Extensions of Remarks]
[Pages E1529-E1530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            HATCH/WAXMAN ACT

                                 ______
                                 

                            HON. RON PACKARD

                             of california

                    in the house of representatives

                      Tuesday, September 19, 2000

  Mr. PACKARD. Mr. Speaker, in 1984, the Hatch/Waxman Act was signed 
into law to bring order to the pharmaceutical economy

[[Page E1530]]

and benefit the American consumer. This Act was enacted in response to 
rising drug prices and assertions by drug companies that long 
regulatory delays increased costs for consumers. The Act served as a 
compromise between the competing interests of generic and brand name 
drug manufacturers. Under the Act, brand drug companies received 
extended patent periods. The patent extensions were designed to enable 
brand companies to make greater profits, which allow for more research. 
The Act also provided generic drug companies with the right to develop 
less-costly generic versions of brand drugs as the patents expire.
  The Act has been a success for two reasons. First, it provides brand 
name and generic drug companies with incentives to provide better 
quality products for consumers; and second, it encourages the brand 
name industry to dedicate more of its profits to research and 
development of new drugs under a set patent expiration date.
  The best way to ensure continued investment in new drug research is 
to make sure the Hatch/Waxman Act is enforced fairly and consistently. 
By doing this, we can give the American public greater access to 
innovative and affordable medicine, and drug companies will have the 
incentives intended by Congress to continue to provide their services.

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