The Federal Trade Commission will subpoena 190 pharmaceutical companies as part of it's Authorized Generic Drug Study, an investigation of possible anticompetitive practices in the industry. Currently, federal law grants generic drug makers a six-month grace period during which generic first-filers have market exclusivity in order to make a profit. But pharmas have started issuing their own authorized generic versions of their brand name drugs to compete with generic companies during this period. The FTC will study whether this inhibits competition from generic drug makers and benefits brand name makers in the long run. The subpoenas are expected to go out late this summer.
- read this AP report for more