FTC Eyes Supply Dispute Between Drugmakers
2 CommentsBy Ed Silverman // November 13th, 2009 // 8:05 am
The Federal Trade Commission is concerned that some brand-name drugmakers are declining to supply some bulk ingredients to their generic rivals which, of course, want to use materials to make copies of more expensive meds, The Wall Street Journal writes.
Meanwhile, GlaxoSmithKline cites a federal drug-safety program as its reason for declining to supply bulk quantities of certain drugs, the paper continues. Why? They maintain the generics aren’t authorized to buy drugs under the program, the paper continues. Naturally, the generics calls this a transparent excuse to block competition.
“We’re going to be very concerned about any practice that could increase prescription-drug costs to American consumers,” FTC chairman Jon Leibowitz tells the Journal, although he declined to say whether an investigation has begun. “You can’t let drug safety be used as a tool to delay generic competition.”
A 2007 drug-safety program restricts distribution of some powerful meds to combat misuse, including Glaxo’s Promacta, which is approved to treat a blood-clotting disorder but can cause liver damage. To ensure that everyone grasps the risks, the FDA requires a risk management program. Meanwhile, Glaxo refuses to supply Promacta to Teva Pharmaceuticals, which it claims isn’t an authorized recipient.
The Journal goes on to report that Teva notes the 2007 safety program can’t be used to ward off generic competition. In a letter to the FTC, Teva charges it has been unable to get supplies of brand-name drugs from Novartis and Bayer as well. Glaxo, by the way, enjoys exclusivity on Promacta until 2012.
A Glaxo spokeswoman tells the Journal that the drugmaker is willing to work with Teva if the FDA approves distribution. But what does the FDA think? No one knows, although Dr. Reddy’s Laboratories filed a petition asking the FDA to decide, the paper notes.
Robert
I can see the logic here for the drugmaker. Why spend millions on new drugs just to ship all the profits over to the generic drugmaker companies? On the other hand, paying $20 a pill for a drug like Provigil is absolutely ridiculous and far too pricey for the average American.
Fanny Farmer
There is just as much or more, from a consumer standpoint with regard to potency and efficacy between brand name drugs and generics. And if your doctor himself agrees, and indicates brand name needed for medical purposes, if there is a lower quality of generic drug available, even if insured, your copay could triple or quadruple.
From the sounds of it, this problem will continue for some time, until fatalities occur.
This should be a primary concern as part of the overall healthcare debate.