Government
Bill would end payments to delay generic drugs
NEWS IN BRIEF — Posted March 5, 2007
Legislation approved by the Senate Judiciary Committee Feb. 15 would end the practice of brand-name pharmaceutical companies settling patent disputes partly by paying generic companies to delay introduction of generics, according to its sponsor, Sen. Herb Kohl (D, Wis.).
Two appellate court decisions in 2005 upheld settlements of patent disputes that allowed the payments, contrary to the Federal Trade Commission's long-standing position against them, according to the FTC.
In the six months following the court decisions, the commission found at least seven settlement agreements in which the generic drug company agreed to some marketing restrictions.
The payments should be examined on a case-by-case basis because some settlements actually speed the introduction of generics, said Billy Tauzin, CEO of Pharmaceutical Research and Manufacturers of America. There is not yet a companion House bill.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/03/05/gvbf0305.htm.
