A major pharmaceutical trade group is adding a generic drugmaker to its ranks, a move that may rankle traditional drug giants.
The Pharmaceutical Research and Manufacturers of America announced Friday that Teva Pharmaceuticals would join the group. Teva is primarily a generic drug maker that produces copies of brand-name products, making Teva a rival to the association’s members that produce brand-name drugs.
Brand name and generic drug companies continually square off over rights to products.
Generic drug makers typically take brand-name makers to court to challenge patents that give companies a monopoly on sales for a certain product. A generic can be sold much cheaper than the brand-name product, so there is an incentive for brand companies to fight to keep exclusivity for as long as they can.
At the same time, generic companies battle to get access to a top-selling drug to make a cheaper but profitable copycat.
Brand-name companies sometimes go to great lengths to delay generic arrivals, including paying generic companies to hold off on putting out a generic.
Earlier this month, the New York Times reported that some PhRMA members were wary of letting Teva join.
The executive vice president of drug maker AbbVie, wrote to PhRMA that if Teva, the world’s largest generic company, joins, then “the association’s emphasis on innovation will be diluted,” the Times reported.
However, some brand-name companies are already making generics. The Times notes that Pfizer sells generics and Novartis has a generic division called Sandoz.
While a majority of Teva’s business is from generics, the company also markets several brand-name products.
“The addition of these biopharmaceutical research companies will help guide us as we advocate for patient-centric policies to enhance the private market and address costs holistically,” said Stephen J. Ubl, PhRMA president and CEO.
PhRMA refused to comment further on any concerns surrounding the Teva membership.
The group also let in four other companies: Alexion, AMAG, Horizon and Jazz Pharmaceuticals.
