US Drug Pacts Keep Some Generics off Market: FTC
By Peter Kaplan
WASHINGTON (Reuters) Apr 25 – Brand-name drug makers are striking more deals with generic rivals to restrict the introduction of cheaper generic drugs, U.S. antitrust authorities said on Monday.
Emboldened by recent victories in court, pharmaceutical companies are using controversial settlements that entail payments to generic rivals which promise to restrict selling competing generic drugs, a Federal Trade Commission official said in a speech on Monday.
“We are seeing far more settlements today that potentially raise competition concerns,” FTC Commissioner Jon Leibowitz said in prepared remarks for a Philadelphia business group.
Leibowitz’s comments came on the same day the FTC released a report on patent settlements among drug companies.
The FTC has filed lawsuits in recent years challenging patent settlement agreements between major drugmakers and their generic rivals. In some cases, the FTC contends the settlements stifle competition because drugmakers are paying generics to stay out of the market.
Generic drugs are typically cheaper for consumers to buy than brand-name drugs.
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Shouldn’t our health insurance companies be fighting this? Generics cost them less, too. What a freaking racket all the damn around. ~grumble spit~
They don’t realize they are pricing themselved out of a market.
What is really cool is the way this will probably work with Medicare Rx Coverage. Everybody will be shoved into the donut hole and will have to PAY higher copays (or straight up for the drug). The insurance companies have this all figured out so that they can make money. It was really cool to find out that the limits that shove a person into the donut hole are not the copays that the poor Med D person pays, but the ACTUAL cost of the drug. Pretty cool, huh?
And that doesn’t include the NON Generics which are NOT on the formularies and which will not be covered anyway.
If I have some of that wrong, forgive me, I am just so filled with MED D hate right now.
Time to move to Canada! The trees are all in bloom right now … ~_^