US FTC settles with Barr Labs over Ovcon

The US Federal Trade Commission says that it has agreed to settle its complaint against generic drugmaker Barr Laboratories, whose agreement with Warner Chilcott, the agency alleges, unlawfully delayed entry of the former's generic version of the latter's Ovcon (norethindrone/ethinyl estradiol) birth control pill into the market.

The FTC declared in a statement: "as a result of the settlement, Barr must refrain from entering into anticompetitive supply agreements with branded companies similar to its agreement with Warner Chilcott regarding Ovcon, refrain from entering other agreements with branded manufacturers that unreasonably restrain competition, and notify the Commission of a broader group of agreements with branded companies that have the potential to harm competition. The terms of the proposed settlement will expire in 10 years."

Entry of the final order against Barr brings to an end the FTC's prosecution against the firm and Warner Chilcott for conspiring to keep a generic version of Ovcon off the market. According to the Commission's complaint filed in November 2005, Warner Chilcott paid Barr $20.0 million in return for its agreement not to sell a copy of the contraceptive until May 2009.