Drugmakers Try To Keep Patent Deals Under Wrap
5 CommentsBy Ed Silverman // January 20th, 2011 // 11:55 am
Two years ago, the US Federal Trade Commission filed a highly publicized lawsuit against Cephalon over pay-to-delay deals worth an estimated $200 million with some generic drugmakers - Ranbaxy Labs, Mylan Labs and Teva Pharmaceuticals - to keep a copycat version of its Provigil sleep-disorder pill off the market until 2012 (read this). Now, though, more than three dozen other drugmakers have raced to court to try to keep details of their own deals from being disclosed as a result of this battle.
In a motion filed in federal court in Philadelphia this week, no fewer than 37 drugmakers - including Abbott Laboratories, Merck, Novartis, Bristol-Myers Squibb, Sanofi-Aventis, GlaxoSmithKline, Pfizer, Bayer, AstraZeneca, Johnson & Johnson, Actavis, Waston Pharmaceuticals, Dr. Reddy’s, Forest Laboratories, Sandoz and Roche - are seeking to prevent the FTC from being compelled to produce documents used to generate two studies critical of pay-to-delay settlements.
Why would the FTC submit details of numerous patent settlements and lawsuits used for a pair of recent studies? As part of its defense to debunk the FTC argument that these deals are anti-competitive, Cephalon wants the court to either bar or compel the FTC to produce “all documents concerning” the studies. The FTC is not willing to oblige. But the other drugmakers, however, fear disclosure of “confidential, highly sensitive” papers that would be “injurious” to their interests (read the motion here).
In other words, this one case could - depending upon how the court rules - yield a treasure trove of details. In doing so, this might pull back the proverbial curtain on the structure of numerous pay-to-delay deals. For better or worse, the thinking and calculations behind the FTC analysis could become clearer. And perhaps, this would offer new insights into previously unknown estimates for pricing and profits held dear by drugmakers - brand-name and generic alike. Small wonder the industry wants this kept locked up.
Evelyn Pringle
This issue alone shows how all our DC politicians are in Pharma’s pocket. Congress and Obama could have and should have put an end to this blatant fraud years ago but they won’t.
I was studying up on the Cephalon case a while back and the FTC leader is frustrated that our lawmakers won’t stop it.
Michael Way
I have many patients come here for medical care, but continue to return to their country to obtain medications. Why? Because they can gut the latest and cheapest. Congress should be held accountable for their hand holding.
Salient point
Maybe this is a play by Cephalon to make itself a more attractive takeover target. A buyout by one of the larger drug companies involved in this proceeding would bring it to a quick end.
Betsy
Please, friends, start writing to your congresspeople and your newspapers about criminal activity, such as the above. in which Big Pharma participates. Take the side of all Americans who cannot afford the high price of drugs, and urge your doctors to stop making deals with pharmaceuticals. (They won’t admit doing it, ‘though.)
The more you and I do this and the more we publicize it, the better our chances will be that we’ll all be able to afford appropriate medications and a fair shake at health care.
Former Big Pharma
These pay-for-delay schemes are just awful. Not only do the drug companies rake the American public over the coals by charging outrageous prices for their products, but they want to be able to buy-off other companies that have the ability to make a cheaper version once they’re off patent. Give us a break! The US pays higher prices for drugs than anywhere else in the world. Why? Because prices are negotiated and controlled everywhere but in the US! How dare the US government, whcih foots a major part of the bill for medications, dare even think about controlling prices. That would be anti-capitalistic and we can’t have that. In the meantime, countless patients suffer because they can’t afford the drugs they need. I say that the US governemnt should allign with every other country that’s trying to control costs and force the pharmaceutical industry to negotiate prices and stop ripping off the American public!