Need for Sen. Franken's Bill to Rein in Prescription Drug Costs Underscored by Supreme Court Ruling

Press Release

U.S. Sen. Al Franken (D-Minn.) said a key U.S. Supreme Court decision relating to the regulation of prescription drugs underscores the need for his bipartisan legislation to ensure that more affordable generic drugs can come to market.

In March, Sen. Franken and Sen. David Vitter (R-La.) introduced the FAIR Generics Act to curb the growing prices consumers are paying for prescriptions by removing incentives to enter into pay-for-delay patent settlements between brand and generic pharmaceutical manufacturers.

"Drug manufactures shouldn't delay consumers' access to cheaper drugs with these anti-competitive settlements," said Sen. Franken. "Yesterday, several Supreme Court Justices made it clear that they believe it's up to Congress to end this anti-consumer, pay-for-delay practice, and my bipartisan bill would do just that."

Pay-for-delay settlements, also called reverse payment settlements agreements, cost consumers and taxpayers billions of dollars. In 2010, the Federal Trade Commission (FTC) reported 31 such settlements (a 60 percent increase since 2009) and in 2011 FTC reported 28 such settlements. Many experts and consumer advocates have called for legislation to address this problem and ensure access to affordable medicines for all American

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