New Laws A Boost For Cheap Generic Drugs

Thursday Sep 14 15:15 AEST

Pharmaceutical companies will have greater incentives to develop cheap generic drugs in Australia under laws passed by federal parliament.

Both major parties in the Senate have supported changes to intellectual property laws designed to make Australia 's pharmaceutical industry more competitive internationally, and prevent drug manufacturers from moving offshore.

The Intellectual Property Laws Amendment Bill changes patent and trademark laws and makes it easier to revoke incorrectly registered trademarks.

The new laws allow Australian companies to more readily engage in "springboarding" - using the subject matter of an existing patent to help obtain approval for new generic versions of patented drugs.

Until now, springboarding had only been possible after a patent had its term extended.

Liberal senator Grant Chapman said the changes would bring major benefits to the generic drugs industry.

"This important amendment will provide many benefits to Australia through a more internationally competitive pharmaceutical industry and an increased self-sufficiency of Australia 's medicines industry," he said.

"This legislation is necessary to ensure that these companies don't withdraw their operations from Australia ."

The bill passed the Senate without amendments.

Source: http://news.ninemsn.com.au/article.aspx?id=144567