Healthy Skepticism Library item: 18322

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Electronic Source

Silverman E
Drugmakers Prompt Fewer Antitrust Concerns?
Pharmalot 2010 July 6
http://www.pharmalot.com/2010/07/are-drugmakers-prompting-fewer-antitrust-concerns/

Full text:

That’s the implication of a new survey released by the European Union, whose antitrust regulators have been raiding drugmakers in several countries seeking evidence they struck anticompetitive deals or used their dominant market positions to squeeze rivals. Last year, EU competition commissioner Neelie Kroes issued a report saying delays in bringing generic drugs to market cost consumers and healthcare providers billions (back story here and here).
Now, the EU says the number of patent settlements that are “potentially problematic” under EU antitrust rules fell to 9, or 10 percent of 93 such deals between July 2008 and December 2009 compared with 45, or 22 percent of the 207 deals in the period covered in last year’s inquiry, which was January 2000 to June 2008. And the amount of money involved in the deals also appears to have decreased from more than $250 million to less than $1.25 million. To compile its report, the commission asked 41 brand-name and 45 generic drugmakers to submit copies of their patent settlement agreements relevant for the EU markets. The exercise will be repeated again next year.
“This would suggest an increased awareness of the industry of which settlement agreements might attract competition law scrutiny. It is good news for consumers that cheaper generic drugs are not being unduly kept out or delayed into the market. At the same time, the overall number of patent settlements shows that the Commission’s heightened scrutiny of the sector has not hindered out-of-court settlement of litigation,” the EU says in a statement. [Our thought: we wonder if comparing one year with eight-and-a-half years is sufficiently insightful].
In the US, however, concerns remain rampant, at least at among some in Washington. Last week, the US House of Representatives passed a proposal under which drugmakers could be fined if the Federal Trade Commission or the courts determine they struck deals to preserve a brand-name drug patent by delaying introduction of a lower-priced generic equivalent. The Senate must now vote (background).