FTC: Pharmas cut 14 deals to delay generic sales in '07
Makers of brand-name prescription drugs reached 14 agreements with makers of generic drugs to delay the generic drug makers entry into the market, according to a new report released by the Federal Trade Commission. The FTC says these deals, which it has dubbed 'pay-for-delay,' are harmful to consumers, but it hasn't been very successful in blocking them to date. The agency is on record as supporting legislation that would ban such deals, but such measures haven't made much progress on the Hill due to opposition from both brand-name and generic drug makers.
The 14 deals discussed were part of a total of 33 deals between brand-name and generic drug makers for FY 2007 reported to the agency (as required by 2003 Medicare legislation). In each of the 14 deals, the generic maker got some kind of compensation to delay the market entry of their generic product, and in 11 of the agreements, the brand-name drug maker agreed not to sell its own generic when its patents expired.
To learn more from the report, and get more context:
- read this Kaiser Daily Health Policy Report item
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