In recent years, branded drug manufacturers have engaged in a tactic designed to stifle competition from lower-cost generic medicines.
. In what are known as ‘pay-for-delay’ patent settlements, generic drug competition is effectively blocked. A US Federal Trade Commission (FTC) study estimates that these anti-competitive arrangements result in $3.5 billion of higher annual drug costs.
The FTC has filed lawsuits and supported anti-pay-for-delay legislation in an effort to stop this practice. Whether pay-for-delay tactics violate US antitrust laws is a matter currently before the courts. If there is an ultimate court finding that these tactics constitute an antitrust violation, those who engage in this practice may find themselves the targets of criminal prosecutions.
An excellent consideration of whether pay-for-delay is illegal was written by Lyle Denniston in his blog Argument preview: Is “pay for delay” of drugs illegal? at www.scotusblog.com/2013/03/argument-preview-is-pay-for-delay-of-drugs-illegal/
Start a subscription to WIPR for £455.
In-house feature articles, the archive and expert comment require a paid subscription. Subscribe now.
Want to give it a try? We are offering a two week free trial to the WIPR website – register and select “Free Trial” to begin access to the full WIPR archive and read the latest news, features and expert comment. Begin your free trial here.
Is your 2 week free trial about to end? Upgrade to a 12 month subscription for £455 now.
If you have already subscribed please login.
If you have any technical issues please email James Lynn on firstname.lastname@example.org.
FTC, pay-for-delay, patent