As reported in the Pharmalot blog, Senators Herb Kohl and Chuck Grassley have introduced legislation that would limit pay for delay deals. The move comes after Congress failed to pass a bill last month, and several payer groups, ppharmacy and retail chains, the FTC and the CBO have called for more limits. The FTC calls the deals anticompetitive and the CBO says the US government could save $2.7 B over 10 years with limits.
Kohl and Grassley say it is wrong to continue to allow brand-name companies to pay generic providers to keep their products off the market thus costing consumers millions. They argue that in the past 4 years, 63 of 194 patent settlement deals had pay for delay provisions for the generic rival in the deal. In 2009, there were 19 such deals so the trend is seen to be on the rise.
Posted by Bruce Lehr Jan 26th 2011.