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Insmed Hires Big Gun in Washington

Richmond pharmaceutical company engages former chairman of the House Ways and Means Committee to push reforms through Congress that would open up more biotech drugs to competition.



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James A. Bacon
Richmond.com
Friday, July 18, 2008

Insmed Inc., a developer of generic drugs, has retained Bill Thomas, former Chairman of the House Ways and Means Committee from 2001 to 2007, to assist the company’s efforts to bring “follow-on biologics” to U.S. customers and consumers.

Follow-on biologics are generic versions of a certain class of biotech drugs whose patent protection is far more extensive than that that of normal pharmaceuticals. As a consequence, the biologics developers don’t face competition from manufacturers of generic versions of their drugs and can keep their prices high, costing U.S. consumers billions of dollars a year.

Thomas played a prominent role developing key health legislation during his 28 years in the House of Representatives, culminating in the passage of the Medicare Modernization Act of 2003, which created Medicare Part D prescription drug coverage for seniors.

Said Thomas in a prepared statement: "During my time in Congress I helped lay the groundwork to allow biologic competition from follow-on biologics. I am excited to partner with Insmed to continue that fight. Biotechnology represents the future of modern healthcare in America, but as is the case across all industries in our economy, competition will foster innovation and benefits for consumers. Insmed is walking the walk, having already produced data showing bioequivalence between one of their products and a pioneer drug. Given the rising costs of healthcare, Congress needs to pass legislation creating a pathway for follow-on biologics."

The announcement follows Insmed's release of data last week demonstrating the bioequivalence between its INS-19 compound and Neupogen, a drug patented by Amgen in 1996. The company also plans to launch a generic form of Neulasta, patented in 1998. The two biologics commanded global sales of $4 billion in 2007. 

Insmed’s goal, said Insmed CEO Geoffrey Allen, is to become the first U.S.-based biotechnology company to develop a comprehensive portfolio of follow-on biologics products. "We want to demonstrate to Washington policymakers that the capability to produce safe, effective and more affordable biologics exists today. All that's needed is for Congress to create an approval pathway."


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