Momentum builds for biogenerics, execs say

By Lewis Krauskopf

NEW YORK (Reuters) - Despite the failure by U.S. legislators to create a path this year for generic versions of biotech drugs, companies that have invested in the products say such legislation could pass in 2008 and yield generic biologics early in the next decade.

Momentum is clearly building, generic drugmakers and other companies that could benefit from the arrival of generic biologics said at the Reuters Health Summit in New York this week.

"The wind is at our back," Barr Pharmaceuticals Inc (BRL.N: Quote, Profile, Research, Stock Buzz) Chief Executive Bruce Downey said. "We've really turned a corner in the last 15 months, and I think we're well on our way to seeing legislation."

U.S. legislators have been debating bills to create a pathway to approve generic forms of many drugs that are derived from naturally occurring proteins, known as biologics.

Such medicines are more complicated to manufacture than standard chemical drugs, making it difficult to determine whether they are equivalent to the originals.

"I really believe in '08 some type of legislation will be passed," said Hospira Inc (HSP.N: Quote, Profile, Research, Stock Buzz) CEO Chris Begley.

Others said it was difficult to predict the legislative process, especially in an election year, but were no less upbeat about an eventual law.

"You can't predict what's going to go on in Congress, but I do think it's starting to resonate," said Thomas Ryan, CEO of CVS Caremark Corp (CVS.N: Quote, Profile, Research, Stock Buzz), the drug store chain and pharmacy benefit manager.  Continued...