Tags: Drug | Company | Deals | Keep | Prices | High

Drug Company Deals Keep Prices High

Tuesday, 25 April 2006 12:00 AM

Brand-name drug makers are striking more and more deals with generic rivals to restrict the introduction of cheaper generic drugs, according to a disturbing new report from the Federal Trade Commission.

The FTC report says pharmaceutical companies are often paying the rival drug companies for not selling competing cheaper generic drugs.

The FTC has monitored drug patent settlements closely since 2004, when Congress passed a law requiring drug companies to notify the FTC about them in advance.

"We are seeing far more settlements today that potentially raise competition concerns," says FTC Commissioner Jon Leibowitz said.

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.

The new report says that in fiscal 2005, three of 16 drug patent settlements included payments to the generic drug maker and restrictions on when the generic drug would become available,

Further, Leibowitz said, at least seven of the 10 settlements reported to the agency included those kinds of provisions.

He cited recent settlements involving Plavix, a drug-thinner blood manufactured by Bristol-Myers Squibb and Sanofi-Aventis, and Provigil, a sleep disorder drug made by Cephalon Inc.

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Brand-name drug makers are striking more and more deals with generic rivals to restrict the introduction of cheaper generic drugs, according to a disturbing new report from the Federal Trade Commission. The FTC report says pharmaceutical companies are often paying the...
Drug,Company,Deals,Keep,Prices,High
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2006-00-25
Tuesday, 25 April 2006 12:00 AM
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