SCOTUS agrees to hear 'pay-for-delay' drug case

Published on December 11, 2012 at 4:52 AM · No Comments

The Supreme Court will hear arguments on the legality of drug companies paying their generic-making counterparts to keep generic drugs -- in this case, a testosterone gel -- off the market.

Politico: Supreme Court Takes Up Case On Generic Drugs
The Supreme Court will take up "pay for delay" -- the multibillion-dollar dispute over whether brand-name drug makers should be able to pay generic drug companies for agreeing to delay putting cheaper versions on the market (Norman, 12/10).

Modern Healthcare: Supreme Court Slates Generic Drug 'Pay-For-Delay' Case
The U.S. Supreme Court has agreed to hear arguments in a "pay-for-delay" case that has the Federal Trade Commission accusing generic drugmakers of violating competition laws by agreeing to accept $42 million in annual payments in exchange for not selling generic versions of a more-expensive brand-name testosterone gel. The FTC says the companies -- lead respondent Watson Pharmaceuticals, along with Paddock Laboratories, Par Pharmaceutical Cos. and Abbott Laboratories subsidiary Solvay Pharmaceuticals -- conspired illegally to keep cheaper drugs off the market, to the detriment of consumers of the brand-name drug. The companies, meanwhile, say their actions were legal and immune from FTC scrutiny. However, they did not oppose a hearing before the U.S. Supreme Court, because they said differing interpretations of federal law had led to split legal reasoning in various U.S. circuits on a controversy of national significance (Carlson, 12/8).

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