Pharmaceutical patent deals are getting cleaner, Brussels says

Jul 5, 2010, 16:24 GMT

Brussels - Patent deals between pharmaceutical firms which develop new therapies and 'generic' companies which copy them are becoming increasingly transparent and more in line with European Union rules, the EU's executive said Monday.

Generic drugs are cheaper than their patented rivals, as their manufacturers have to pay less for research. In 2009 the European Commission said that some out-of-court deals between generic and originator firms appeared to be designed to delay the launch of generic drugs, limiting consumers' access to cheaper medicine.

According to commission figures, 22 per cent of the settlements carried out between January 2000 and June 2008 were 'potentially problematic' in competition terms, for example by apparently stalling the launch of a generic drug in return for direct payments.

Between July 2008 and the end of 2009, just 10 per cent of patent settlements were classified as potentially problematic, a commission statement said.

'This would suggest an increased awareness by the industry of which settlement agreements might attract competition law scrutiny. It is good news for consumers that cheaper generic drugs are not being unduly kept out or delayed,' the statement said.

The commission targeted the pharmaceutical sector for special attention in 2009, amidst fears that companies in the industry were sidestepping EU rules on fair competition.

The Brussels-based body will repeat its analysis of patent deals in 2011, the statement said.