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FTC Must Tackle Anti-Competitive Drug Rebate Practices

Law360 (May 17, 2019, 3:22 PM EDT) -- Pharmaceutical manufacturers have implemented a strategy to block and delay entry of new innovative drugs from the market through a contracting practice that creates what is known as a “rebate wall” or “rebate trap”.[1] While rebates can be procompetitive if they lead to lower prices for consumers, some drug manufacturers are structuring rebates to limit competition from rivals in an effort to protect their monopolies.

This article sets forth how the Federal Trade Commission can examine and challenge rebate walls. First, this article provides a detailed explanation of rebate walls. Second, it outlines how they harm consumers. Third, it provides a...

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