Pay-for-delay deals rise

Report finds increase in pacts among drug companies despite FTC’s efforts to reduce them

A new Federal Trade Commission (FTC) report found an increase in pay-for-delay deals, in which brand-name pharmaceutical companies settle patent litigation with generic-drug companies by reaching agreements that delay the release of cheaper drugs to market.

According to the report, drug companies made 40 pay-for-delay agreements involving 31 different brand-name drugs with combined sales of more than $8.3 million in the 2012 fiscal year. In nearly half of the deals, the brand-name companies agreed not to market their generics that would compete with the generic-drug companies’ products as long as the generic-drug companies promised to delay production of their drugs.

Ashley Post

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