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FTC Assesses Impact of 6 Years of Pay-for-Delay Drug Settlements

News release: “Federal Trade Commission Chairman Jon Leibowitz and key members of Congress, including Representative Chris Van Hollen, Chairman Bobby Rush, and Representative Mary Jo Kilroy, today renewed their call for legislation that would put an end to anticompetitive patent settlements, which drug manufacturers have been using to keep less-expensive medicines off the market and charge consumers billions of dollars a year in higher drug prices. Speaking at a joint press conference, Leibowitz said consumers are forced to pay inflated prices or forgo their medication because of these “pay-for-delay” deals, in which brand-name drug makers pay their generic competitors to keep cheaper alternatives off the market. He urged Congress to adopt a provision as part of the health care reform bill to stop pay-for-delay agreements.”

  • Pay-for-Delay: How Drug Company Pay-Offs Cost Consumers Billions Federal Trade, An FTC Staff Study, January 2010: “Brand-name pharmaceutical companies can delay generic competition that lowers prices by agreeing to pay a generic competitor to hold its competing product off the market for a certain period of time. These so-called “pay-for-delay” agreements have arisen as part of patent litigation settlement agreements between brand-name and generic pharmaceutical companies.”
  • Reporter Resources: Pay-for-Delay in the Pharmaceutical Industry
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