Another generic drug company joins state senior drug program

JEFFERSON CITY, Mo. -- A second large generic drug company has agreed to join Missouri's prescription drug plan for low-income seniors on the condition that lawmakers change the program next year.

Geneva Pharmaceuticals of New Jersey joined the SenioRx Program on Monday but will be allowed to withdraw by May if the Legislature does not reduce the rebate that drug companies are required to pay under the program.

Some drug manufacturers had objected to a required 15 percent rebate that is used to help fund the program. They want the mandatory rebate lowered to 11 percent -- the amount used by the federal government.

Lt. Gov. Joe Maxwell, chairman of the prescription drug program, said he was pleased that Geneva had agreed to participate. TEVA Pharmaceuticals USA of North Wales, Pa., agreed to join the program last week.

Maxwell said a lot of work will have to be done during the next legislative session to keep the companies on board.

"It's absolutely a risk, but a risk I'm willing to take," Maxwell said.

And if lawmakers do not meet the requirements set out by the companies?

"Then the state will not be able to offer an affordable plan to the seniors of Missouri," Maxwell said.

About 1,400 pharmacies and 100 drug manufacturers participate in the program. Maxwell is still negotiating with Mylan Laboratories Inc. of Pittsburgh to join the plan with the offer to opt out if the rebate issue is not resolved.

The lack of participation has caused senior citizens to pay more for their prescriptions.

Maxwell said that Geneva, TEVA and Mylan represent about 60 percent of the generic drug market.