As recounted in the PharmaTech Talk blog a Senate panel approved legislation to prohibit ethical drug companies paying generic competitors to delay bringing their products to market. Both US and EU authorities have considered these so called "pay to delay" agreements anticompetitive.
The FTC noted that there were 21 of these deals in the US in the first 9 months of 2010 - more than in all of 2009. Consumer advocates estimate these deals could cost consumers billions of dollars in additional drug expenditures. Healthcare Reform being very cost conscious - needless to say these type of deals have been under scrutiny for some time and are high on the FTC hit list to bring to an end.
Under the new proposed legislation, Preserve Access to Affordable Generics Drugs Act, such settlements would be deemed illegal. The burden would be on the companies entering such agreements to show that they were not anticompetitive.
Posted by Bruce Lehr August 4th 2010.