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
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)
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(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.