FTC calls for end to reverse payments for generic companies

WASHINGTON Reverse payments, a practice by major pharmaceutical companies of paying generic drug companies to delay putting less-expensive, generic medicines on the market violates federal law and must be stopped, a top-ranking official with the Federal Trade Commission said, according to Reuters.

“This is a major priority for the commission because we strongly believe these deals violate the antitrust laws,” said FTC Commissioner Jon Leibowitz. “We believe they are costing consumers and the federal government, which pays for 30 percent of prescription drugs, billions and billions of dollars each year.”

All drug companies are required to report any patent settlement to the FTC, but the settlements are structured to show that the brand companies are paying for something other than delaying a generic version of a drug.

There are bills before the Senate and House of Representatives to ban reverse payments. Pharmaceutical companies and makers of generic drugs oppose them, and they seem unlikely to win approval in this Congress.