Drug Makers Use Safety Rule to Block Generics

By KATIE THOMAS
April 15, 2013

For decades, pharmaceutical companies have deployed an array of 
tactics aimed at preventing low-cost copies of their drugs from 
entering the marketplace.

But federal regulators contend the latest strategy - which relies on 
a creative interpretation of drug safety laws - is illegal.

The Federal Trade Commission recently weighed in on a legal case over 
the tactic involving the drug maker Actelion, and earlier this month 
a federal suit was filed in another case in Florida.

"We definitely see this as a significant threat to competition," said 
Markus Meier, who oversees the commission's health care competition 
team.

The new approach is almost elegant in its simplicity: brand-name drug 
makers are refusing to sell their products to generic companies, 
which need to analyze them so they can create the copycat versions. 
Traditionally, the generic drug makers purchased samples from 
wholesalers. But because of safety concerns, an increasing number of 
drugs are sold with restrictions on who can buy them, forcing the 
generic manufacturers to ask the brand-name companies for samples. 
When they do, the brand-name firms say no.

Brand-name companies say they are protecting themselves - and 
patients - in case the drugs are somehow used improperly. They say no 
law requires one company to do business with another.

...

http://www.nytimes.com/2013/04/16/business/drug-makers-use-safety-rule-to-block-generics.html


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