Pay-for-delay agreements between brand and generic drugmakers should be subject to antitrust scrutiny, the Supreme Court has ruled. This means that a brand-name drugmaker can be sued for violation of antitrust laws if it agrees to pay generic drugmakers to delay putting their drug on the market.
The 5-3 vote should make it easier for the likes of the Federal Trade Commission (FTC) to challenge pay-for-delay deals, also known as reverse settlements, in the courts.
Pay-for-delay deals are thought to increase costs to American consumers by $3.5 billion dollars a year (Reuters). FTC Chairman Edith Ramirez said: "The Supreme Court's decision is a significant victory for American consumers, American taxpayers, and free markets."
However, most drug settlements may still be allowed, according to Reuters. JP Morgan analyst Chris Schott said: “While we believe the Supreme Court decision will open the door to broader FTC scrutiny of brand/generic settlements, we believe a majority of settlements will still be allowed even if reviewed by the FTC.”
If you're interested in understanding the key market trends, policy updates, strategy and future environment for the generics sector, you might be be interested in attending World Generic Medicines Congress Americas 2013, 19-21 November 2013, Boston.