Biotech Values

[Biopharm investor]

Score one for pharma

and a loss for generics and consumers alike.

Though not unexpected, FDA rejected Mylan's Citizen's Petition you referred to. Typical short-term perspective by FDA that played right into the hands of pharma. Characterizing AG's a "pro-competitive business practice" is ridiculous.

FDA says it will allow "authorized generic" drugs
Friday July 2, 5:43 pm ET

WASHINGTON, July 2 (Reuters) - U.S. regulators on Friday rejected requests from Mylan Laboratories Inc. (NYSE:MYL - News) and Teva Pharmaceutical Industries Ltd. (Tel Aviv:TEVA.TA - News; NasdaqNM:TEVA - News) to prohibit "authorized generics," a tactic the companies said unfairly undermines sales of generic drug makers.

When the patent ends on a brand-name medicine, the first drug maker approved to sell a cheaper copy receives a 180-day period of exclusivity without competition from other generic versions.

Major drug makers have skirted that exclusivity by cutting deals with other generic firms to make so-called authorized generics during the 180-day period.

Mylan and Teva filed petitions with the Food and Drug Administration asking the agency to outlaw marketing of authorized generics during the exclusivity period.

The FDA on Friday said it denied the petitions.

"Marketing of authorized generics increases competition, promoting lower prices for pharmaceuticals," the FDA said in a statement.

Regulators also denied a petition from Pfizer Inc. (NYSE:PFE - News) that sought to keep generic companies from waiving the 180-day exclusivity period.

"FDA sees no reason to interfere with the marketing of authorized generics and waiving 180-day exclusivity, two long-standing, pro-competitive business practices," the agency said.

Officials at the three companies could not immediately be reached for comment.