Post by unlawflcombatnt on Jul 1, 2010 22:05:53 GMT -6
from Bloomberg.com
House Approves Restrictions on Deals Between Drugmakers
By Jeff Bliss -
Jul 1, 2010
"The U.S. House today passed legislation that includes a restriction on drugmakers’ ability to make deals that the Federal Trade Commission said keep generic medicines off the market.
Companies could be fined under the measure if the FTC and courts find they are involved in settlements that preserve a brand-name pharmaceutical firm’s patent by delaying a generic- drug maker’s introduction of a lower-priced product. The proposal now goes to the Senate.
The House action is “just another signal of the growing support in Congress for ending this unconscionable behavior by some pharmaceutical companies,” said FTC Chairman Jon Leibowitz in an interview before the vote.
Leibowitz has made restrictions on so-called pay-for-delay deals one of his priorities. Such payments are made by brand- name drug companies to makers of generics to postpone bringing generic products to market, he said.
The restriction was included in an amendment, approved on a 239-182 vote, added to a war-funding bill the House passed tonight.
Drugmakers are lobbying against the provision, and passage in the Senate isn’t assured. At a June 9 hearing, Senators Orrin Hatch, a Utah Republican, and Arlen Specter, a Pennsylvania Democrat, said they were concerned the FTC campaign against the deals may discourage agreements that benefit consumers....
The FTC contends brand-name companies often offer generic- drug manufacturers licensing rights on a product or other compensation in exchange for an agreement that delays the marketing of cheaper drugs....
The legislation gives drug companies 30 days to appeal an FTC ruling on any deal....
The Congressional Budget Office estimates the restriction on drug agreements would save the government $2.4 billion over 10 years by reducing the cost of drugs purchased through Medicare, Medicaid and other government programs, according to a Democratic summary of the bill.
The war bill is H.R. 4899."
House Approves Restrictions on Deals Between Drugmakers
By Jeff Bliss -
Jul 1, 2010
"The U.S. House today passed legislation that includes a restriction on drugmakers’ ability to make deals that the Federal Trade Commission said keep generic medicines off the market.
Companies could be fined under the measure if the FTC and courts find they are involved in settlements that preserve a brand-name pharmaceutical firm’s patent by delaying a generic- drug maker’s introduction of a lower-priced product. The proposal now goes to the Senate.
The House action is “just another signal of the growing support in Congress for ending this unconscionable behavior by some pharmaceutical companies,” said FTC Chairman Jon Leibowitz in an interview before the vote.
Leibowitz has made restrictions on so-called pay-for-delay deals one of his priorities. Such payments are made by brand- name drug companies to makers of generics to postpone bringing generic products to market, he said.
The restriction was included in an amendment, approved on a 239-182 vote, added to a war-funding bill the House passed tonight.
Drugmakers are lobbying against the provision, and passage in the Senate isn’t assured. At a June 9 hearing, Senators Orrin Hatch, a Utah Republican, and Arlen Specter, a Pennsylvania Democrat, said they were concerned the FTC campaign against the deals may discourage agreements that benefit consumers....
The FTC contends brand-name companies often offer generic- drug manufacturers licensing rights on a product or other compensation in exchange for an agreement that delays the marketing of cheaper drugs....
The legislation gives drug companies 30 days to appeal an FTC ruling on any deal....
The Congressional Budget Office estimates the restriction on drug agreements would save the government $2.4 billion over 10 years by reducing the cost of drugs purchased through Medicare, Medicaid and other government programs, according to a Democratic summary of the bill.
The war bill is H.R. 4899."