Schwitzer health news blog

The Big Pharma Big Bucks Battle To Stifle Generic Drugs

The Washington Post reports that the Federal Trade Commission is frustrated with its inability to stop brand-name drug companies from cutting million dollar deals with generic drug makers to keep the cheaper generics off the market.

Two federal appeals court rulings last year rejected FTC actions that since the late 1990s had prevented brand-name companies from paying their rivals to drop patent challenges.

The Post reports: "An FTC analysis found at least seven such agreements so far in fiscal 2006, with three in 2005. Before that, no generic companies had been paid to drop their patent challenges for years.

Speaking (Monday) in Philadelphia, FTC Commissioner Jon Leibowitz said that if the appeals court decisions remain in force, rival drugmakers will have 'carte blanche to avoid competition and share resulting profits.' He said the commission had agreed to ask the Supreme Court to overturn one of the lower-court decisions.

'Until recently, payments by brand-name companies to generics were the exception, but now they're the rule,' he said in an interview after his speech. 'They appear to be a new way to do business, and that's very troubling. Hopefully the Supreme Court will take our case and reverse.'

Yeah, it's great to be alive in the era of consumer-driven health care in America!