Parliament passes controversial bill on generic substitution of drugs

US appeals against measure, calling it the “only problem in Finnish-US relations”

Pertti Salolainen

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Parliamentary debate on the final passage of a bill expanding the substitution of name brand medications with generic copies got an extra twist on Tuesday when it came out that the United States had twice appealed to the Finnish Parliament to reject one part of the reform
      Parliament did not react to the US objections, and unanimously approved the text of the reform, even though there had been some resistance at the committee stage.
      The measure changes the pricing system of generic drugs and brings new medications into the fold of those that can be exchanged for cheaper generic copies in a pharmacy.
      The so-called reference price system lowers drug costs and has been enthusiastically supported in Parliament. There has been some dispute over the expansion of generic drug substitution.
     
Under the new law, the array of medicines included in generic substitution will be extended to drugs protected before 1995 by patents affecting the production method of the drug.
      The reform has been opposed by pharmaceutical manufacturers in Finland, Switzerland, and the United States. The Swiss and US ambassadors have both appealed to Finland not to implement the amendment.
      There were contradictory sentiments raised in Parliament. The Commerce Committee and the Foreign Affairs Committee warned that the decision could cause problems for research and trade.
      They proposed that a transitional period be given to the method patent drugs, because many important patents will expire in the coming years.
      The Social Affairs and Health Committee nevertheless did not see any good reasons for such a move.
     
During a visit to Washington last week, the Foreign Affairs Committee met with an official at the US State Department, who said that the issue of generic substitution is the only problem in US-Finnish relations, and appealed to the Finns not to pass the bill.
      On Tuesday, the committee’s chairman, Pertti Salolainen (Nat. Coalition Party), received a letter from Senator Richard Lugar which contained the same appeal.
      Salolainen warned that Finland could face difficulties in trade in developed technology. Committee member Liisa Jaakonsaari (SDP) doubted that such threats would be carried out in practice.
     
In the Parliamentary debate that preceded the decision, Toimi Kankaanniemi (Christ. Dem.) and Ulla Karvo (Nat. Coalition Party) said that they expected that there would be negative consequences. However, neither would make any counter proposals.
      Staunchly defending the bill were Juha Rehula (Centre Party), chairman of the Social Affairs and Health Committee, and Erkki Virtanen (Left Alliance), a member of that committee. Virtanen noted that now Finland would stop paying out EUR 50 million a year in subsidies for the US and Swiss pharmaceutical industries.


Previously in HS International Edition:
  Generic drugs bring savings of EUR 55.1 million (5.1.2004)
  Generic medicines spark considerable price competition at pharmacies (15.4.2003)

Helsingin Sanomat