Crackdown on Big Pharma May Result in More Generics

If the Federal Trade Commission gets its way, inexpensive generic versions of blockbuster drugs will arrive soon at a pharmacy near you.

This week, for the first time ever, the FTC took action against a pharmaceutical company for allegedly abusing the patent system to protect exclusive drug manufacturing rights. The FTC said the company, Biovail (BVF Quote), had improperly extended its patent on the high blood pressure treatment Tiazac, preventing rival Andrx (ADRX Quote) from making a generic version.

As a result, generic Tiazac stayed off shelves while the two companies fought in court. "The end result of the practice is that consumers have been denied the lower-priced generic drug for years," says Andrew Forman, a pharmaceutical analyst with Friedman Billings Ramsey. ...