OMB
COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS
Report No: 568
Date: 01/25/2002
- LAW NUMBER:
P.L.107-109 (S. 1789)
- BILL TITLE:
Best Pharmaceuticals for Children Act
- BILL PURPOSE:
Extends through October 1, 2007, a provision of law that gives drug
companies an extra six months of exclusive marketing rights for certain
drugs that are tested for use on children.
- OMB ESTIMATE:
P.L. 107-109 expands the authority of the National Institutes of Health's
National Foundation for Biomedical Research to collect funds to support
pediatric pharmacologic research and studies on certain drugs. OMB estimates
that any funds collected would be spent on research grants in the same
year.
|
(Fiscal
years; in millions of dollars) |
|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Net
costs. . . . . . . . . . . . . . . . . . . . |
0 |
0 |
0 |
0 |
0 |
0 |
- CBO ESTIMATE:
|
(Fiscal
years; in millions of dollars) |
|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Net
costs. . . . . . . . . . . . . . . . . . . . |
0 |
-8 |
-5 |
-4 |
-7 |
-15 |
In addition
to scoring the provision scored by OMB, CBO scores the effects of the
Act on direct spending and receipts from potential changes in drug prices
resulting from the extension in exclusivity of marketing rights.
- EXPLANATION
OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
The difference
between OMB and CBO estimates of net costs is primarily for provisions
related to the extension of market exclusivity. CBO scores the impact
of changes in drug prices resulting from the changes in market exclusivity;
OMB considers these changes in drug prices to be an indirect effect
of the Act and thus not scorable for pay-as-you-go purposes.
- CUMULATIVE
EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
|
(Fiscal
years; in millions of dollars) |
|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Outlay
effect.............. |
5,503 |
18,465 |
23,825 |
23,533 |
22,822 |
8,218 |
Receipt
effect............ |
-69,768 |
-34,950 |
-84,840 |
-104,135 |
-105,311 |
-123,752 |
Net
costs.................... |
75,271 |
53,415 |
108,665 |
127,668 |
128,133 |
131,970 |
|