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FTC rips deals delaying generics introductions

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The Federal Trade Commission is levelling sharp criticism at pharmaceutical manufacturers for what it calls sweetheart deals with manufacturers that delay the introduction of low-cost generic drugs.

The Federal Trade Commission (FTC) is levelling sharp criticism at pharmaceutical manufacturers for what it calls sweetheart deals with generic manufacturers that delay the introduction of low-cost generic drugs.

In a study, the commission ripped drug makers for avoiding competition from generics by agreeing not to introduce their own generic versions of a drug if a competing generic drug maker agreed to delay its own version.

"Collusive deals to keep generics off the market are already costing consumers and taxpayers $3.5 billion a year in higher drug prices," said FTC Chairman Jon Leibowitz. "The increasing number of these deals is a win-win proposition for the pharmaceutical industry, but a lose-lose for everyone else."

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The Generic Pharmaceutical Association and Pharmaceutical Research and Manufacturers of America defended the agreements, calling them legal business decisions.


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