Today we heard the disappointing news that President Obama is speaking with Congressional leaders about reducing the number of years of data exclusivity for biotech drugs.  This is bad news for patients who are waiting for research to find cures for deadly diseases.  Researchers need funding from investors and investors need incentive to invest – like longer data exclusivity.

The House and the Senate have already overwhelmingly agreed to a 12 year data exclusivity for biotech companies, long enough for them to recoup their investments in research, development and production of biologics, a measure to which President Obama agreed as a U.S. Senator.

The potential consequences of reducing the length of data exclusivity could be debilitating for biotech companies and even worse for patients. Without a guarantee that investors will be able to recoup research costs, there will be little incentive for further innovation. This means the life saving and targeted therapeutics developed through biotechnology are at risk.

Jim Greenwood, President and CEO of the Biotechnology Industry Organization (BIO) explains:

They are attacking a biosimilars provision  where a consensus and legislative solution has already been reached in the Senate and House, one that would encourage life-saving biomedical research while expanding access to powerful biologics, medicines that treat devastating diseases such as Alzheimer’s, HIV/AIDS and cancer.  It also preserves existing U.S. jobs and maintains the biotechnology sector’s ability to create high-wage, high-value jobs.

IAmBiotech will continue to cover these developments, so stay tuned for more information.

To learn more about biosimilars, check out this great post by Jonathan Sheffi.

You can also read more at  http://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011403612.html.