F.T.C. Criticizes Agreements That Delay Generic Drugs
August 31, 2011
The New York Times
By Duff Wilson
Some drug makers are using an indirect method to delay competition from low-cost generic products by promising not to introduce their own generic versions if a potential competitor delays its entry into the market, the Federal Trade Commission said in a report on Wednesday.
Until lately, the so-called pay-for-delay cases have focused mostly on cash payments by drug companies to settle patent litigation with generic competitors in return for concessions on when to enter the market. These new agreements add a twist to the patent settlements.
The industry contends they are legal business decisions.
The F.T.C. says they are illegal sweetheart deals that cost consumers $3.5 billion a year. Read more