Supreme Court Rules for Generic Drugs, Against ‘Pay for Delay’
The Supreme Court ruled Monday that brand-name drug makers can be sued for violating the antitrust laws if they make a deal that pays a potential competitor to put off selling a generic version.
The 5-3 decision is likely to benefit consumers with lower prices. The Federal Trade Commission, which has pursued suits against the drug makers, estimated these so-called “pay for delay” deals cost consumers and health plans $3.5 billion a year.
The ruling is likely to send a warning to drug makers who wish to deter generic rivals from entering the market. A “large and unjustified” payment to settle a patent dispute can trigger an antitrust claim against the brand-maker, the court said.
This case posed a conflict between the patent laws, which give patent holders a type of monopoly, and the anti-trust laws which forbid monopolies and anti-competitive deals.
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