FTC Challenges Payments to Delay Generics

Deal to keep generic drug off the market is anti-competitive, regulators say

By Clay Dillow, Newser Staff

Posted Feb 3, 2009 9:25 AM CST

(Newser) – The Federal Trade Commission, pledging to oppose “pay-for-delay” agreements, filed suit against a brand-name testosterone-replacement drug manufacturer for paying three competitors to delay introductions of generic versions, the Washington Post reports. Nearly half of settlements between brand-name drug-makers and their generic counterparts in 2006 and 2007 resulted in such arrangements, which the FTC claims violate antitrust laws and create unfair monopolies.

[Images (2)]

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Generic pharmaceuticals can undercut their name-brand competitors by 90%, prompting some brand-name drug-makers to participate in anti-competitive practices, the FTC claims. (Getty Images)

Dr. Stephen Hill, President and CEO, Solvay Pharmaceuticals (Photo: Business Wire)

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We want to stop these unconscionable pay-for-delay deals that force consumers to overpay for much-needed drugs.
- Jon Leibowitz, an FTC commissioner

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COMMENTS

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Showing 3 of 4 comments

Shannonals

Feb 4, 2009 2:45 AM CST

About time the FTC did something

Mad

Feb 2, 2009 11:21 PM CST

Right on FTC... The market is waiting for (wait for it) generic testosterone

Guest

Feb 2, 2009 11:08 PM CST

Universial Healthcare is a dream. Regulating the pharmacuetical industry may actually be doable and would probably do way more to ease the blight our healthcare system is seeing. I for one would rather pay more for good healthcare... than get a break and get mediocre healthcare. When it comes to your health you can't be too careful and our current healthcare system may have problems but it is still a great system in comparison. In quality it surpasses most universal health systems. MOVE TO CANADA AND TRY OUT THEIR SYSTEM! The universal health care song you people sing will end.

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Washington Post (Source Grid »)

California AG joins FTC in monopoly suit
Los Angeles Business Journal

Watson, Par caught up in 'pay-to-delay' scandal
Forbes

Glaxo to cut more than 6,000 as generic competition weighs heavy
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Money • Crime & Courts • Health

pharmaceutical companies • FTC • generic drugs • monopoly • antitrust suit • pharmaceutical industry • Solvay Pharmaceuticals

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FTC Challenges Payments to Delay Generics