22 MARKET NEWS

New orphan dmg bill approved by US ~

Legislation proposing to 'curb pricing abuses' and encourage competition in the orphan drug programme, cleared the Senate Labor and Human Resources Committee with support from both parties, according to a report in the Wall Street Journal [12 May 1994].

The bill is a compromise between patient-rights groups and the biotechnology industry, says chairman Senator Edward Kennedy. While it would decrease the market monopoly for orphan drugs from 7 to 4 years, a 3-year extension could be granted by the secretary of Health and Human Services. However, critics of the bill contend that 'the scaled-back monopoly would chill private-sector research '.

The legislation, supported by the Clinton administration, would not concern orphan drugs already on the market or under development before March 1 1994. [See also 1npharma 932: 22, 2 Apr 1994; 800293385].

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