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Data exclusivity - the generics market's third hurdle

Despite much discussion and concern raised at the European Generics Medicines Association (EGA) meeting held in Brussels, 20-21 November 2001, very few high-selling drugs gain further marketing monopoly from the provision afforded by data exclusivity post European approval.

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R&D profile:

- Arava (leflunomide)

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A study carried out by the editors of IMS HEALTH's Patents International and Generic Planning shows that very few drugs afford any additional monopoly period due to data exclusivity if the drug has already had a supplementary protection certificate (SPC) granted in that country. Indeed, most leading drugs are covered by SPCs far beyond the period of data exclusivity.

Notable exception protects true innovation

Only drugs that do not have granted SPCs or took an exceptionally long time to traverse the R&D process gain significantly from the data exclusivity provisions. There are, however, a few notable exceptions. Aventis' innovative drug leflunomide (Arava, for rheumatoid arthritis) took years to develop and thus had limited effective patent life left at launch; even with the additional protection afforded by a granted SPC it did not have the usual level of marketing monopoly. Data exclusivity has provided a further five years protection in the EU market following SPC expiry. Without this data exclusivity period, on commercial grounds this innovative drug may never have reached the market.

The analysis highlighted the marketed drugs that do not have SPCs, and in these cases the data exclusivity provisions can afford a significant marketing monopoly far beyond patent expiry.

Emergence of Czech SPCs

The survey revealed that in general, the data exclusivity period at best restored only a few years in those countries where SPCs had not been granted or were refused. Patents International monitors SPC filing and granting across all EU and EFTA countries, as well as Switzerland and the Czech Republic. Patents International has also been monitoring the emergence of SPCs in the Eastern European countries, but as yet only the Czech Republic has filed SPCs. Patents International has recorded 23 filings of SPCs in the Czech Republic to date, and none of these have so far been granted. Other countries like Hungary and Poland are set to introduce SPCs when they accede to the EU .

Data exclusivity - what is it?

 

Data exclusivity runs from the date of first approval in the European Community, and conveys 10 years exclusivity from this date if the drug has been approved via the Centralised procedure through the EMEA. This is referred to as an EU approval. Through the decentralised procedure or national procedure, the data exclusivity period is 10 years in certain EU countries (Belgium, Germany, France, Italy, the Netherlands, Sweden, the UK and Luxembourg) and six years in others (Austria, Denmark, Finland, Ireland, Portugal, Spain, Greece, Norway and Iceland). If the patent has already expired, there may be 0-6 years data exclusivity in Spain, Portugal and Greece.

In order for a generic drug to be approved in the EU, it goes through what is called an abridged product licence registration process. Generics companies have to prove bioequivalence to the original innovator’s reference product, but do not have to conduct the clinical trials that proved efficacy and safety of the drug. They are allowed to use the dossier presented by the originator to gain the product licence in a country. However, the generics company is not allowed access to this data until the drug has been approved in the EU for six or 10 years - this is referred to as the data exclusivity period.

An even higher hurdle

The areas of concern for many generics companies are the provisions before the European Parliament in the Volume 2A Procedures for marketing authorisation (Chapter 1 Marketing Authorisation May 2001 proposal), whereby the 6-10-year data exclusivity period would be extended to a 10-year period across all EC countries. Furthermore, the provision would also allow innovative companies to gain a further year's data exclusivity on an additional therapeutic indication, providing 10 + 1 years data exclusivity.

Even more concerning for generics manufacturers is the provision for certain innovative drugs to gain a further 10 years on top of the original 10 years if the reformulation provided a significant advantage to the community in general - a somewhat loosely worded part of the proposal.

Thus Dr Gordon Wright's quote "that it is not patent expiry that you need to be concerned about but when does marketing exclusivity expire" is an even more apt remark in view of these new proposals. Dr Wright, European Patent Attorney with Elkington and Fife, was speaking on 'Recent Developments in the Use of Supplementary Protection Certificates' at Euro Legal's 8th Annual International Conference on Patent Protection for the Pharmaceutical and Biotechnology Industries in November 2001.

Unlike the situation with SPCs where there is a register of all those filed and granted in an EU country, the same is not true for data exclusivity and there appears to be more scope for interpretation. Issues that arise are very complex - but vital to generics companies. Unfortunately, they often take a lot of time and perseverance to resolve.

External Links:
EGA
Elkington and Fife
Copyright IMS HEALTH, 9 Jan 2001













 

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