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US: FTC continues pay-for-delay battle with latest lawsuit

By  |  September 9, 2014

The US Federal Trade Commission has filed a lawsuit against several pharmaceutical companies for delaying the release of a cheaper form of a medication, a conspiracy known as pay-for-delay agreements.

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    Reports say the FTC filed its suit against brand name pharmaceutical companies AbbVie and Besins Healthcare, as well as against generic maker Teva Pharmaceuticals, with accusations the companies agreed to delay the release of the generic form of a testosterone replacement therapy cream. In pay-for-delay agreements, brand name companies pay their generic counterparts from delaying the release of their cheaper drugs for sale.

    The FTC’s allegations include claims of restraint of trade against companies.

    In the wake of a high-profile pay-for-delay case that reached the US Supreme Court, FTC v. Actavis, a precedent was set that determined large cash settlement pay-for-delay deals were anticompetitive.

    Now, the industry is awaiting a ruling by the US Court of Appeals for the Third Circuit, which will hear the appeal of a lawsuit that was dismissed because the pay-for-delay deal did not involve a cash settlement.

    Full content: The Legal Intelligencer

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