Teva, the Israeli pharmaceutical company, was one of five companies who gained membership into the industry trade group the Pharmaceutical Research and Manufacturers of America (PhRMA) on Friday.
Teva is one of the world’s top producers of generic drugs, which is why this inclusion comes as a bit of a surprise because PhRMA and other member companies have defended the use of brand-name drugs.
PhRMA’s announcement explained that the inclusion of Teva along with its other compatriots are part of the organization’s efforts in modernizing the drug discovery and development process as well as advocating for value-driven health care.
“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 President and CEO of PhRMA Stephen J. Ubl in a statement.
Teva’s membership could benefit both the firm and PhRMA in a few ways, according to The New York Times.
The company could provide PhRMA with additional revenue during a period where it’s facing scrutiny over drug prices and similar issues. Teva would have access to more resources and use the name recognition of the group to advance causes in Washington D.C.
However, companies like AbbVie were against the acceptance of Teva’s application, reported the Times.
Carlos Alban, executive vice president of AbbVie, sent a letter to PhRMA’s board in May writing that the inclusion of the world’s largest generic drug maker would dilute the association’s emphasis on innovation since generic drug firms tend to file lengthy litigation suits regarding patents in order to sell copycat versions.
Still, this development is a sign that the lines between the generics and brand name drug businesses are blending together, explained STAT.
Teva has a sizeable generic business, but it has marketed brand name drugs as well. Also, firms like Pfizer and Amgen have begun developing their own versions of biosimilar drugs.
Plus, companies on both sides of this argument may share the same lobbying concerns over drug pricing since they teamed up to successfully delay an FDA proposal aimed at changing generic drug labeling.
Filed Under: Drug Discovery
