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FTC generics study

This article was originally published in The Tan Sheet

Executive Summary

FTC expects to complete its study of the impact of "authorized" generics in 2007. A March 29 release from the commission seeks comments on the study, which was requested by Sens. Charles Grassley (R-Iowa), Patrick Leahy (D-Vt.) and John Rockefeller (D-W.Va.) in May 2005. The senators sought to access the "short-term and long-term effects on competition" of authorized generics. The generics industry has been concerned that authorized generics discourage firms from challenging patents because it reduces the profit incentive of the 180-day exclusivity period. Proponents of the practice argue that having multiple generics on the market at that time reduces prices for consumers. Approximately 190 firms are expected to be surveyed. FTC will ask firms to report sales numbers and other figures for each affected product beginning a year before generic entry. FTC currently is seeking comments, however, on "ways to limit the number of companies included in the study without undermining the validity and reliability" of the results. Comments are due June 5...
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