U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) renewed their efforts to crack down on anti-competitive pay-for-delay pharmaceutical deals.
The senators reintroduced the Preserve Access to Affordable Generics Act, which would increase consumers’ access to the cost-saving generic drugs they need by helping put an end to the practice of brand-name drug manufacturers using pay-off agreements to keep more affordable generic equivalents off the market.
A report from the Federal Trade Commission in December 2014 identified 29 potential pay-for-delay settlements involving 21 different branded pharmaceutical products, with combined U.S. sales of approximately $4.3 billion.
“Pay-for-delay pharmaceutical deals force consumers to pay higher prices by keeping affordable alternatives to brand-name drugs off the market,” said Klobuchar. “Our legislation will help ensure people have access to the medications they need at a price they can afford by putting an end to these harmful agreements once and for all.”
The Preserve Access to Affordable Generics Act would crack down on anti-competitive pay-offs and make sure consumers have access to the cost-saving generic drugs they need. Pay-for-delay agreements delay generic entry into the market an average of nearly 17 months longer than agreements without payments. These pay-off settlements (also known as “reverse payments”) delay consumer access to generic drugs, which can be as much as 90 percent cheaper than brand-name drugs.
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The legislation would make it illegal for brand-name drug manufacturers to use anti-competitive pay-off agreements to keep more affordable generic equivalents off the market. Klobuchar and Grassley introduced similar legislation last Congress following a resurgence of patent settlement agreements.
