FTC Sues in ‘Pay-for-Delay’ Pact

February 3, 2009

The Federal Trade Commission has filed suit in federal court in an attempt to block a deal in which a manufacturer of a brand-name testosterone-replacement drug paid three competitors to delay rolling out cheaper generic versions.

The FTC said the “pay-for-delay” agreement violates antitrust laws, robs consumers of less-expensive alternatives and allows the brand-name drugmaker an unfair monopoly. The state of California joined the federal agency in its complaint, which was filed last week in U.S. District Court in the Central District of California.

FTC officials are hoping the case will ultimately reach the U.S. Supreme Court. “We want to stop these unconscionable pay-for-delay deals that force consumers to overpay for much-needed drugs,” said Jon Leibowitz, an FTC commissioner.

Read Article: Washington Post

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