The FTC Finds that Authorized Generic Drugs Yield Procompetitive Benefits


The FTC on August 31, 2011 issued the results of its study on the competitive impact of authorized generics (“Authorized Generic Drugs: Short-Term Effects and Long-Term Impact,” available at (see alert below for link). The FTC’s findings provide strong support for the conclusion that entry by authorized generics is procompetitive because it lowers prescription drug prices without deterring generic entry. These findings by the FTC may well put to rest generic manufacturer lawsuits and legislative efforts to curtail entry by authorized generics.

- The FTC has found that authorized generic drugs are procompetitive because they lower prescription drug prices without deterring traditional generic drug entry.

- The FTC’s report rebuts concerns raised by generic manufacturers and some in Congress over the competitive effects of authorized generics.

- Caution: The FTC believes that patent settlements involving authorized generic delay are similar to patent settlements involving cash payments for generic delay and may violate the antitrust laws.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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