FTC Supports Rule Change to Expose Anticompetitive Drug Patent Deals

1. FTC Support for Rule Change: The Federal Trade Commission (FTC) has backed a proposed rule change that would require pharmaceutical companies to file all pre-institution patent settlement agreements, enhancing antitrust oversight and potentially curbing anticompetitive practices.
2. Patent Settlement Agreements: The proposed rule change would mandate the disclosure of all patent settlement agreements, including those made before the Patent Trial and Appeal Board (PTAB) initiates a trial proceeding. This would help the FTC and the Department of Justice identify and investigate potentially unlawful settlements.
3. Anticompetitive Practices: The FTC aims to prevent anticompetitive practices, such as reverse payment settlements, which can delay the entry of lower-cost generic drugs and keep drug prices high.
4. Pharmaceutical Industry Impact: The rule change could expose pharmaceutical companies to antitrust probes if they engage in anticompetitive patent deals, potentially affecting the pricing and availability of drugs.
5. FTC's Ongoing Efforts: The FTC has been actively challenging improper patent listings and promoting competition in the pharmaceutical industry, including disputing over 300 junk patent listings for diabetes, weight loss, asthma, and COPD drugs.