Equitable Growth’s Michael Kades co-authors AARP amicus brief in Impax Laboratories, Inc. v. Federal Trade Commission court case

The Washington Center for Equitable Growth’s Director of Markets and Competition Policy Michael Kades co-authored an amicus brief for AARP and the AARP Foundation filed with the U.S. Court of Appeals for the 5th Circuit in the case of Impax Laboratories, Inc. v. Federal Trade Commission. The brief urged the 5th Circuit to uphold a decision by the Federal Trade Commission that a reverse-payment settlement between Impax and Endo Pharmaceuticals was anticompetitive. A reverse-payment settlement occurs when the patent-holder (in this case, Endo) sues the alleged infringer (Impax) and then pays the alleged infringer not to sell its product.

The brief details why “ever-escalating prices [for prescription drugs] disproportionately harm older adults, as they typically take more prescription drugs than younger adults and live on fixed or lower incomes.” The brief notes that “[t]he high price of drugs forces some to sacrifice their health and welfare by not filling their prescriptions because they cannot afford the medication.”

The brief makes the point that “delaying the market entry of generic drugs harms consumers by limiting their choices and thereby increasing their costs,” adding that “[c]ompetition from generic drugs is an effective way to slow the spiraling price of drugs. The brief explains that ruling against the FTC would weaken antitrust rules and allow the return of anticompetitive reverse-payment settlements that increase prescription drug costs for consumers and the U.S. healthcare system. Read the full amicus brief here.