Ending the Silence of Generic Drugmakers; The Federal Trade Commission Says Drugmakers are Paying Generic Rivals Not to Compete

When Jon Leibowitz became chairman of the Federal Trade Commission last year, high on his to-do list was ending drug industry "pay-to-delay" deals. Here's how they work: A generic drugmaker files an application with the U.S. Food & Drug Administration to begin selling a low-cost version of a patented drug. The brand-name drugmaker files suit to prevent approval until U.S. patents expire. Then, the FTC claims, the brand-name company will often pay the generic drugmaker to drop any patent challenges and hold off on bringing its drug to market, delaying pressure from a low-cost alternative to reduce prices.

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