Congressional Bill Would Restrict Pay-To-Delay Agreements

Five months after the US Supreme Court ruled that drugmakers can be subject to antitrust scrutiny for their so-called pay-to-delay deals, a Democratic congressman has introduced legislation that would declare these agreements to be unlawful, although the language differs from a Senate bill that assumes a deal is illegal if challenged by the US Federal Trade Commission. The Supreme Court, you may recall, decided drugmakers can face lawsuits over pay-to-delay patent settlements, although such deals should not necessarily be assumed to be illegal. Also known as reverse settlements, these typically involve a brand-name drugmaker paying a settlement to a generic rival in exchange for ending patent litigation and launching a copycat medicine at a future date (back story with ruling). The pharmaceutical industry has argued these settlements actually speed lower-cost generics to pharmacy shelves and medicine cabinets, and warned that outlawing the deals could drastically alter the strategic decisions behind the introduction of many generic drugs. This, in turn, would raise costs to consumers. But the Supreme Court largely vindicated the FTC position that the deals are anti-competitive because generic drugmakers are given incentive to file lawsuits against brand-name rivals and then settle for a quick profit, rather than challenge a patent in court. The FTC maintains these deals cost US consumers about $3.5 billion annually. Even before the court ruling, a pair of Senate bills was int...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs