The Supreme Court Decides Over “Pay to Delay” on Generic Drugs

“The Supreme Court is going to decide this term whether it’s okay for brand-name drug companies to pay generic drug makers to delay the release of their cheaper alternatives.

This so-called “pay for delay” practice costs consumers $3.5 billion each year in higher drug costs, the Federal Trade Commission claims.

On Friday, the justices agreed to hear three of these cases — including Federal Trade Commission v. Watson Pharmaceuticals.

Here’s how pay-for-delay typically works.

Brand-name drug makers sue generic companies for patent infringement, and then agree to withdraw the suits and pay some money to generics if they agree not to sell their cheaper drugs for a while…”

Read more