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Drugmakers’ settlements cost consumers: FTC
Modern Healthcare

Generic drugs are supposed to compete with branded pharmaceuticals to drive down prices, but a report from the Federal Trade Commission says a spike in legal settlements among drugmakers in 2012 stifled competition and cost Americans an extra $3.5 billion.

The finding comes as the U.S. Supreme Court prepares to hear oral arguments in a “pay for delay” case, FTC v. Watson Pharmaceuticals, in which the government agency says several drugmakers drove up consumer prices for topical testosterone treatments by settling patent challenges for cash payments instead of fighting in court.