Significant decline in 'pay-for-delay' deals, says US FTC

Pharmaceutical companies entered into substantially fewer potential pay-for-delay patent dispute settlements in fiscal year 2014, according to a new report from staff at the US Federal Trade Commission.

The report summarizes data on patent settlements – which can arise between brand and generic drug companies – filed with the FTC and the Department of Justice during fiscal year 2014 under the Medicare Modernization Act of 2003. Generic drugs often cost less than brand drugs, helping to make medicines affordable for millions of American consumers and to keep health care costs down.

“Consumers are better off when there is more competition from lower-priced generic medicines,” said Debbie Feinstein, director of the FTC’s Bureau of Competition, adding: “So although it is too soon to know if these are lasting trends, it is encouraging to see a significant decline in the number of reverse payment settlements.”