[Congressional Record (Bound Edition), Volume 146 (2000), Part 13]
[Extensions of Remarks]
[Page 18601]
[From the U.S. 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 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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