Healthy Skepticism Library item: 16062

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

'Pay for delay' deals unlawful
PM Live 2009 Jul 7
http://www.pmlive.com/find_an_article/allarticles/categories/General/2009/july/news/pay_for_delay_deals_unlawful

Full text:

Manufacturers of branded pharmaceuticals who pay generics companies to abandon patent challenges should be presumed unlawful, according to the US Department of Justice.

A New York federal appeals court asked the Department to give its view in a case brought by a number of drug purchasers. They are challenging an agreement in which Bayer paid Barr Pharmaceuticals to delay producing a generic version of the antibiotic Cipro.

The position expressed by the Department is now in line with that of the Federal Trade Commission, which opposes such ‘pay for delay’ settlements. This marks a change under the Obama administration.

Industry lobbying groups say that these deals resolve costly and lengthy patent litigation disputes, but members of the House of Representative and the Senate have proposed legislation to ban the practice.