FOR IMMEDIATE RELEASE: JUNE 18, 2013
Sterling, VA – The American Medical Student Association (AMSA), the nation’s largest independent medical student organization, congratulates the Supreme Court of the United States on its decision in FTC v. Actavis, which subjects pay-for-delay agreements to antitrust scrutiny. While AMSA had hoped for a stronger ruling, the organization is disappointed that the Court declined to explicitly declare these deals “anticompetitive” and unlawful. However, the 5-3 decision is still expected to deter pay-for-delay agreements.
Pay-for-delay deals occur when brand-name pharmaceutical companies compensate generic drug manufacturers to delay the release of lower-cost alternatives. These arrangements ultimately drive up costs for consumers.
“Consumers end up paying 60-99 percent more for brand-name medications,” says Dr. Nida Degesys, AMSA national president. “AMSA strongly opposes pay-for-delay agreements. While we had hoped for a more decisive ruling today, we see this as a step in the right direction toward ending these deals.”
Blocking access to affordable generics prolongs financial barriers to treatment for vulnerable populations in the U.S. and abroad. Domestically, these settlements restrict physicians’ prescribing options and diminish quality of care. Internationally, delays in access to generic medications can cost thousands of lives. Additionally, these agreements stifle innovation by allowing brand-name companies to continue charging high prices for drugs that may be protected by weak patents. Federal Trade Commission economists estimate that these deals will cost U.S. consumers $35 billion over the next decade.
“Scientific progress depends on competition, not collusion. The healthcare system should serve patients in need, not just those who can afford it,” adds Degesys.
AMSA, alongside other consumer advocacy organizations, urges Congress to reinforce this ruling by passing legislation that explicitly deems these agreements anticompetitive and unlawful. Two bills currently before the Senate address this issue: the Fair and Immediate Release of Generic Drugs Act (S.504), also known as the FAIR Generics Act, and the Preserve Access to Affordable Generics Act (S.214). The Congressional Budget Office estimates that passing the latter bill would save $11 billion in federal spending over the next decade, in addition to lowering out-of-pocket costs for patients.
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About the American Medical Student Association
AMSA is the oldest and largest independent association of physicians-in-training in the United States. Founded in 1950, AMSA is a student-governed, non-profit organization committed to representing the concerns of physicians-in-training. To learn more about AMSA, our strategic priorities, or joining the organization, please visit us online at www.amsa.org.