The bill proposes that wholesalers and pharmacies could buy drugs from abroad, which are often sold for considerably less than in the US. Dorgan believes that savings of $50bn over the next decade could be generated and said that big pharma has already acted in an attempt not to lose these profits.
In a statement on his website Dorgan said: “We know that Pfizer, GlaxoSmithKline, Eli Lilly and others are already shutting off supply of drugs to those in Canada that export drugs to American consumers.”
Under the terms of the act these practices would be classed as unfair and discriminatory and companies engaging in them would have to pay three times the amount their actions cost the US.
Dorgan believes this “should deter such behavior by the drug companies” but further measures are in place punish those that attempt to sidestep the legislation. These include the threat of action by the US Federal Trade Commission, which can use all the jurisdiction, powers, and duties that are outlined in its eponymous Act.
Furthermore, the bill enables individual States to launch civil actions against companies when the “interest of the residents of that State have been adversely affected by any manufacturer” in violation of the legislation.
This can result in the attorney general of the State seeking any such “relief as the court may consider to be appropriate” and forcing the manufacturer to comply with the legislation.
Bill has influential backers
Dorgan is confident the bill will be passed, despite failing in the past, because President Obama and Senator Hilary Clinton were co-sponsors of the earlier attempt. In addition Senator John McCain has co-sponsored the bill in its current and past incarnations.
With these influential figures supporting the bill Dorgan believes there is a “tail wind” this time around that will help the document pass successfully through the House and the Senate and into law.
The complete legislation can be found here.