The Financial Times reports on FT.com that the US Congress is about to close the door on so called "pay for delay" deals between brand name drug producers and their generic rivals. Under "pay for delay" schemes (and that's the right word), the brand name producer pays its rival to keep the generic competitive drug off the market for a period of time to extend its exclusivity and money making potential - at the expense of consumers. One top regulator, Jon Lebowitz of the FTC, terms the practice the "most corrupt" in the healthcare industry and "blatantly anti-competitve"
Legislation passed the House on Thursday night as a rider to an Afghanistan War funding bill. It is known to have bipartisan Senate support, including from Charles Grassley and Olympia Snowe on the republican side. The CBO has estimated the legislation will save Medicare about $2.4 B over the next 10 years. The FTC says it will save consumers $35 B over those 10 years.
The law is known as the "Preserve Access to Generics Act". Saints Preserve Us All.
Posted by Bruce Lehr July 2nd 2010.