The Supreme Court has rejected a challenge to so-called “pay-to-delay” deals which delay generic prescription drugs from hitting the market. The deals between brand-name and generic pharmaceutical companies can keep more affordable generic prescription drugs from hitting the market, forcing consumers to continue to pay for more expensive brand-name prescription drugs.
Pay-to-delay deals have become more common over the last few years as brand-name prescription drug companies have been fighting to keep their most profitable prescription drugs from facing competition from cheaper generic prescription drugs. In a pay-for-delay deal, the brand name pharmaceutical company will pay pay the generic manufacturer cash or some other payment (like a percentage of profits) to keep their more affordable generic drug off the market for a period of time.
The Obama Administration is still working on including a ban on pay-for-delay deals in its proposed budget. The administration said the ban would save $8.8 billion over the next 10 years.
Do you think that pharmaceutical companies should be able to delay cheaper generics from hitting the market? Tell us about it!
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