US House votes to ban some drug patent settlements

The U.S. House of Representatives has approved a ban on some patent agreements between brand name and generic drug companies, deals which a federal agency says slow the arrival of cheaper generic drugs to market.

The House, voting late on Thursday, approved the measure as part of its approval of money to pay for President Barack Obama’s Afghanistan troop increase.

The measure, backed by the Federal Trade Commission, must now be considered by the Senate. The U.S. House has approved the measure previously but it has died in the Senate.

The Generic Pharmaceutical Association (GPhA) said it was disappointed in the vote.

“As this legislation moves to the Senate, GPhA will expand its efforts to point out that a curb on settlements will not hasten generic market entry, but rather will delay the launch of new and affordable generic medicines,” the group said.

“The unintended consequence of these restrictions on settlements will significantly harm the millions of Americans who rely on generic drugs,” it said in a statement.

But the House move pleased FTC Chairman Jon Leibowitz, who has made stopping the deals a centerpiece of his tenure on the commission. The FTC says the deals break antitrust law in instances where brand name drug companies essentially pay generic companies to delay entering the market.

“Congress has taken a critical step towards ending a practice that is dramatically increasing the cost of prescription drugs,” said Leibowitz.

The FTC has estimated that the deals - which often come as part of settling patent litigation - cost consumers about $3.5 billion a year by delaying access to generics.

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WASHINGTON (Reuters)