FTC: End "Pay-To-Delay" Patent Settlements To Save Consumers $3.5 Billions Annually

Matthew Perrone
The Associated Press

WASHINGTON (AP) — The chairman of the Federal Trade Commission says eliminating lucrative patent settlements between brand-name and generic drug companies would save consumers $3.5 billion annually.

The FTC has waged a yearslong campaign against so-called "pay-to-delay" settlements, in which a branded drug company rewards a generic competitor for keeping cheaper versions of its drugs off the market.

Drugmakers argue that the settlements are an efficient way to end costly patent litigation, but FTC Commissioner Jon Leibowitz said Tuesday that they also deprive consumers of low cost medicines.

Leibowitz called on Congress to pass a bill that would ban the settlements. He said the legislation — currently making its way through congressional committees — could save consumers $35 billion over 10 years, about $12 billion of which would go to the government.

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