Drugmakers hesitant to let generic rival Teva join PhRMA

Teva Pharmaceutical Industries, an Israel-based generic drugmaker, surprised the drug industry by requesting to join the Pharmaceutical Research and Manufacturers of America, a powerful trade association for drug companies producing brand-name medicines, according to The New York Times.

PhRMA calls itself the principal voice of the innovative pharmaceutical industry, a title some believe could be tarnished upon Teva's acceptance into the group.

Teva's massive generics business and its plan to acquire the global generic operations from Parsippany, N.J.-based Allergan for $40.5 billion raise serious questions about the company's commitment to innovative drug approaches, according to Carlos Alban, an executive vice president of North Chicago, Ill.–based AbbVie.

Furthermore, Teva and some of PhRMA's longtime members like Indianapolis-based Eli Lilly have butted heads in court cases involving patents and other issues related to the future of brand name drug companies. Teva has also taken positions directly opposed to PhRMA's views on patents and biosimilars, according to Mr. Alban.

Teva views itself as a hybrid drug company, citing the $6 billion in revenue it earned last year for its brand name drugs as justification for its acceptance into PhRMA.

Teva's membership in PhRMA would increase the group's resources and strength, while adding millions of dollars in additional revenue. It would also enhance the credibility of PhRMA lobbyists fighting against accusations of price gouging, since Teva has long supported the need for consumers to have affordable medicine.

PhRMA's board will consider Teva's application at a meeting later this month.

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