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Express Scripts pays $9.5M settlement over drug switching

Wed, 28 May 2008 06:59:58 -0400

Pharmacy benefit manager Express Scripts has agreed to pay a total of $9.5 million to 28 states and the District of Columbia to settle allegations that it engaged in deceptive prescription-switching practices. The attorneys general involved had been investigating the company, arguing that Express Scripts switched patients to brand-name cholesterol drugs in an attempt to maximize the volume rebates it got from drug manufacturers. While patients were told they'd benefit from the switch, they actually ended up incurring some expenses from the change, according to the Pennsylvania AG's office. In signing the agreement, the company didn't admit any wrongdoing.

Under the terms of the settlement, Express Scripts agrees that it no longer will solicit patient drug switches if the cost exceeds that of the original script, if the original drug has a generic equivalent while the switch doesn't, if the original drug's patent will expire in six months, or if the patient was switched within the last two years. Express scripts also agreed to disclose any financial incentives it may have for soliciting a prescription switch and to reimburse patients for any related costs they might incur.

To learn more about the settlement:
- read this Modern Healthcare piece (reg. req.)

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FTC: Pharmas cut 14 deals to delay generic sales in '07

Tue, 27 May 2008 06:59:57 -0400

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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SPOTLIGHT: Bill would allow FDA to improve generic biotech drugs

Tue, 18 Mar 2008 07:59:52 -0400

Two members of Congress have introduced a bill that would allow the FDA to approve generic versions of biotechnonology drugs, though it also would allow companies making brand-name biotech drugs to keep their exclusive rights for at least 12 years before the generics could hit the market. It would also require clinical trials for the generics, though the FDA could waive that requirement. Article

SPOTLIGHT: Prescription drug sales slowing

Thu, 13 Mar 2008 07:59:52 -0400

It's hard to imagine, given the barrage of direct-to-consumer ads, armies of pharma reps replete with wining and dining privileges, prescription data-mining and the like, but the stats say drug sales still are struggling. Apparently, sales of U.S. prescription drugs grew only 3.8 percent in 2007, the lowest increase since a 3.3 percent rise in 1961. Researchers say that generics are playing a big role in undercutting brand-name sales. Article