Drug Competition Act of 2002

The Drug Competition Act of 2002 requires brand-name pharmaceutical companies and generic drug manufacturers to report any business agreements they make with each other to the Federal Trade Commission and the Department of Justice. These companies must submit their agreements within ten days of signing them, provided the deals involve the manufacture or sale of drugs or the timing of a generic version's entry into the market.

The bill is designed to prevent "pay-for-delay" deals, where brand-name companies pay generic competitors to keep cheaper versions of a drug off the market. By increasing government oversight of these private settlements, the legislation aims to ensure that generic drugs become available to consumers as soon as legally possible, which can lead to lower prescription costs for the public. Companies that fail to report these agreements face civil penalties of up to $11,000 per day.