Authorized Generic Drugs: Short-Term Effects and Long-Term Impact
"This Report analyzes the competitive effects of authorized generic drugs (“AGs”). AGs
are pharmaceutical products that are approved as brand-name drugs but marketed as generic
drugs. AGs do not bear the brand-name or trademark of the brand-name drug or manufacturer,
but the brand-name and AG products are manufactured to the brand’s specifications. In
examining competitive effects, the Report looks both at the price and revenue effects of AG
competition and at the potential long-term impacts on incentives for generics to challenge
patents on brand-name drugs. The Report also assesses the competitive implications of patent
litigation settlements in which brand-name companies refrain from offering an AG when the
generic company agrees to defer its entry (so-called “pay-for-delay settlements..."

FTC Staff Report Finds 60 Percent Increase in Pharmaceutical Industry Deals That Delay Consumers' Access to Lower-Cost Generic Drugs
"Pharmaceutical companies struck an unprecedented number of deals in Fiscal Year (FY) 2010 in which the manufacturers of branded products paid potential generic rivals and generic companies agreed to defer the introduction of lower-cost medicines for American consumers, according to an overview of industry data released by the staff of the Federal Trade Commission.

The FTC staff report found that the number of these deals skyrocketed more than 60 percent, from 19 in FY 2009 to 31 in FY 2010. Overall, the agreements reached in the latest fiscal year involved 22 different brand-name pharmaceutical products with combined annual U.S. sales of about $9.3 billion..."