Federal Trade Commission Chairman Jon Leibowitz issued the following statement regarding the House of Representatives’ approval of legislation to stop anticompetitive drug patent settlements. FTC economists estimate that these collusive deals between brand name and generic drug companies cost consumers about $3.5 billion a year by delaying consumers’ access to lower-cost generic drugs.
“Congress has taken a critical step towards ending a practice that is dramatically increasing the cost of prescription drugs. This bipartisan legislation would save American consumers and taxpayers billions of dollars by stopping sweetheart deals that delay the entry of low-cost generics, while at the same time allowing settlements that benefit consumers,” Leibowitz said.