IHS Chemical Week

Markets :: Fine Chemicals/Biotech :: Pharmaceutical ingredients

Pharmaceutical Reverse Payments and Lower Drug Costs: An Interesting Dilemma

4:47 AM MDT | July 26, 2010 | Girish Malhotra

The U.S. Federal Trade Commission and the lawmakers have scorned the concept of the ‘reverse payment’ - also called “pay-for delay” - in the pharmaceutical business. The U.S. House of Representative recently voted 239-182 to restrict such payments in the hopes that stopping such payments will reduce the cost of drugs to the consumer. Legislators would like to see the drug costs lowered for their constituents. Everyone had expected that the entry of generics would significantly reduce the drug prices. Generics have put some pressure on...

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