Jon Leibowitz, designated as the new chairman of the FTC by President Barack Obama, told an audience last week at the liberal Center for American Progress that Congress should ban so-called “pay-for-delay” deals that the industry utilizes to keep cheaper drugs out of the hands of Americans. “You have a permissive and conflicting legal regime that allows pharmaceutical companies to make collusive deals on the backs of consumers,” Leibowitz said.

 

Leibowitz also said the FTC has determined that outlawing “exclusion payments” would speed up the availability of generic drugs and save consumers $3.5 billion a year.

 

Several bills have been introduced in Congress that seek to ban the current pay-for-delay practice, which is also being challenged in lawsuits against drug manufacturers.

-Noel Brinkerhoff

 

FTC Chairman Pushes Antitrust Legislation (by David Ingram, Blog of the Legal Times)

“Pay-for-Delay” Delas Cost Consumers $3.5 Billion a Year (by Shirley S. Wang, Wall Street Journal)

Pay-for-Delay Settlements in the Pharmacuetical Industry: How Congress Can Stop Anitcompetitive Conduct, Protect Consumers’ Wallets, and Help Pay for health Care Reform (The $35 Billion Solution) (speech by Jon Leibowitz) (PDF)