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US Congress calls for end to pay-for-delay deals
Pay-for-delay deals have come under the scanner of the US Federal Trade Commission and Congress. The FTC and Congressmen have called for the end to 'pay-for-delay' deals, reports CNBC-TV18's Priyanka Ghosh.
Pay-for-delay deals have come under the scanner of the US Federal Trade Commission and Congress. The FTC and Congressmen have called for the end to 'pay-for-delay' deals, reports CNBC-TV18's Priyanka Ghosh.
FTC says brand names, generics company pacts are causing drug launch delays. It stated that the launch of generic drugs have been delayed by 17 months. "The cost to consumer on account of the delayed launch stands at USD 35 billion over 10 years." Nineteen pay-for-delay deals were signed in FY09.
What it means for Indian companies?
As far as India is concerned, Ranbaxy , Lupin , Sun Pharma , DRL and Glenmark have signed up agreement deals with big pharma companies in US. It is yet unclear, however, if any of these deals are under the FTC scanner and if any of these companies have received any kind of milestone payment to not enter US markets till such time that the patent expires. The implication is that the pharmaceutical companies will be taken storm if this actually comes in because it will mean an overhauling of Hatch-Waxman law, which lays guidelines for generic company to enter US markets.
