FTC reports brand name pharamaceutical companies striking deals to delay introduction of generic alt

The Federal Trade Commission (FTC) reported that there were 14 cases in federal fiscal year 2007 (October 2006-September 2007) where brand name pharmaceutical companies reached deals with generic drug firms to delay the sale of generic drugs ("U.S. FTC reports 14 deals to delay generics in '07," Reuters, May 23, 2008).  In these deals the FTC found that the generic firms received some form of compensation to delay production.

The FTC did provide the names of the medications affected by these deals.  While the FTC states its opposition to these deals and belief that they violate antitrust law, courts have split on the question of if such deals are legal. 

Ten members of the U.S. Senate are sponsoring legislation to prohibit such deals.  This legislation has found strong opposition from both brand name pharmaceutical companies and makers of generic medications.

FTC Commissioner Jon Leibowitz, commenting on the report, said: "What it shows is that this problem is persistent. It's becoming the new way to do business. It means that consumers in need of affordable drugs are going to get generics later, not sooner."