J&J: Co Doesn't Have Plans To Enter 'Biosimilars' Market
Last update: 4/7/2009 1:01:19 PM
By Jared A. Favole
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--A Johnson & Johnson (JNJ) policy director on Tuesday said the health-care conglomerate doesn't have plans to get into the "biosimilars" market, but didn't rule out doing so in the future.
The New Jersey-based company has had success with biologics, complex and expensive medicines derived from living organisms. But it doesn't currently have plans to enter the market for biosimilars, which are cheaper, generic-like versions of biologics, said Audrey Phillips, an executive director of public policy for J&J. J&J's moves differ from those of other pharmaceutical companies.
Merck & Co. (MRK) has created a new division to launch biosimilars, and Eli Lilly & Co. (LLY) has said it would consider entering that market. Several bills in Congress would make it easier for biosimilars to make it to market, though the bills differ widely.
A bill proposed by Reps. Joe Barton, R.-Texas, and Anna Eshoo, D.-Calif, gives brand-name biologic makers 12 years of exclusivity before generic versions can hit the market. Rep. Henry Waxman, D.-Calif., introduced a bill that would give brand-name biologics only five years of exclusivity before generic versions could reach the market.
The exclusivity in the Waxman bill is "far from sufficient," Phillips said, echoing sentiments by economists and others in the pharmaceutical industry that companies need about 12 years of exclusivity to have the financial incentive to make medical products.
Making such products can be costly and take decades to develop. Phillips added that JNJ supports the Barton and Eshoo bill. Phillips and other JNJ officials said biologics are hard to replicate, noting that these medicines are based on more complex molecules than traditional drugs, and they want any legislation to continue to encourage innovation.
The company highlighted its success with Remicade as a reason why pharmaceutical companies need exclusive time to develop a medical product. The biologic was approved in 1998 to treat a painful inflammatory bowel disease, and has since been expanded to treat rheumatoid arthritis. The biologic brought in sales of $3.7 billion in 2008, making it J&J's largest-selling product.
Dirk