US FTC wants deals over generic entry involving payments to be curbed

At a hearing of the US Senate Judiciary Committee, the Federal Trade Commission called for moves to prevent agreements between brand-name pharmaceutical companies and generic drugmakers to delay entry to the market of copy products, which has been possible under the provisions of the Hatch-Waxman legislation.

Committee chairman Patrick Leahy (Democrat, Vermont) put forward a bill at the hearing which would bar such deals. He said that these agreements between R&D and generics firms were tantamount to "collusion that limits consumer choices and keeps consumer prices artificially high," noting that "Congress never intended for brand-name drug companies to be able to pay off generic companies not to produce generic medicines."

Also testifying was Senator Arlen Specter (Republican, Pennsylvania), who said: "I do think there's a burden on people making these settlements to show why they are not anti-competitive," but added: "is it wise for the Congress to have a sweeping generalization that this is a per se violation?"