Senators say drug makers shouldn’t ‘pay-off’ generic makers for delays

Sens. Amy Klobuchar (D-Minn.) and Chuck Grassley (R-Iowa) called for the end of brand-name drug manufacturers using pay-off agreements to keep cheaper generic equivalents off the market.

“These anti-competitive patent settlements between brand and generic drug companies only serve to keep the price of prescription drugs high and reduce consumer choice,” Grassley said Thursday.

Klobuchar and Grassley’s comments came after the Federal Trade Commission (FTC) released a report Thursday, which showed that the number of potential pay-for-delay agreements rose more than 40 percent this year.

“Drug manufacturers are using pay-off agreements to keep cheaper generic drugs off the market while raking in huge profits, and it has to stop,” Klobuchar said. “I have long supported efforts to prevent this anti-consumer practice and this new report highlights the need for legislation to help make sure people have access to the drugs they need at a price they can afford.”

Klobuchar and Grassley said they would reintroduce the Preserve Access to Affordable Generics Act during the 113th Congress to end anti-competitive pay-offs and make sure consumers have access to the cost-saving generic drugs.

“Today’s report shows that pay-for-delay deal-making remains an obstacle to getting cheaper prescription drugs on the market,” Grassley said. “While the Supreme Court will consider a case this year on these deals, Senator Klobuchar and I will continue to press for a legislative remedy to put consumers first.”

Pay-for-delay agreements, or reverse payments, delay generic drug from hitting the market for nearly 17 months on average compared to agreements without payments.

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