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Supreme Court Rules Against Pharmaceuticals "Pay for Delay"


Business  (tags: drugs, health, healthcare, risks, treatment, protection, abuse, americans, business, consumers, corporate, corruption, ethics, GoodNews, goodnews, law, society, money, usa )

JL
- 549 days ago - pubcit.typepad.com
Consumer advocates have long been outraged by the phenomenon of "pay for delay" in the prescription drug business, whereby brand-name drug companies pay off potential generic competitors to stay out of the market



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JL A. (276)
Sunday June 23, 2013, 10:36 am
Monday, June 17, 2013
Supreme Court Rules Against Pharmaceuticals "Pay for Delay"

Consumer advocates have long been outraged by the phenomenon of "pay for delay" in the prescription drug business, whereby brand-name drug companies pay off potential generic competitors to stay out of the market. In return for the payments, the generics drop their challenges to the brand name companies' patents, and the brand name and generic companies essentially split the monopoly profits earned by the brand name drug. Today the Supreme Court ruled that these kinds of arrangements are subject to challenge under the antitrust laws, overruling decisions of a number of lower courts that had held these anticompetitive deals immune from antitrust challenge.

Under today's ruling in FTC v. Actavis, pay-for-delay deals will not necessarily be found illegal. The Court did not hold them illegal per se, or even presumptively illegal. Instead, it said that challengers have to prove they are antitrust violations under what is called the "rule of reason" test, meaning that their anticompetitive impact outweighs any pro-competitive benefits. But the majority's opinion made clear that these deals can have significant anticompetitive effects and that the reasons given by some lower courts for upholding them (such as the policy of encouraging settlement of legal disputes) don't hold water.

This looks like a victory for consumers, though there will likely be a lot more litigation before any one of these deals actually is held to be unlawful. Even so, companies may be less likely to enter into them now that the Court has held they can be the subject of antitrust challenges, which if nothing else involve substantial legal expenses that will eat into the monopolists' profits.

Posted by Scott Nelson
 

Barbara D. (79)
Sunday June 23, 2013, 10:44 am
No kidding!! I'm taking a medication, a medication that's critical for me to take, which costs over $800 a month although it's been licensed for generic production for over 2 years. Thank you, Cephalon et al.
 

Kit B. (276)
Sunday June 23, 2013, 11:17 am

Each decision hedges for the loop hole that would favor the larger corporations and not the people who must buy the prescriptions, namely us. Disappointing.
 

Joanne Dixon (40)
Sunday June 23, 2013, 11:35 am
I don't exactly have Plan D, what I have is a carryover from the last place but two that I worked, because I was able to take retirement at that time. It has excellent prescription benefits, but the difference in co-pay between brand and generic, while certainly less expensive than paying full price,would make a huge sent in my living expenses (I'm fortunate that everyting I take now is generic). With no insurance, or less generous insurance, this easily could mean the difference between eating and starving.
 

JL A. (276)
Sunday June 23, 2013, 11:37 am
It is less than ideal, but gives room for hope to build the tsunami Kit. You are welcome Barbara. Excellent explanation of how it impacts many people Joanne.
You cannot currently send a star to Kit because you have done so within the last day.

 

JL A. (276)
Sunday June 23, 2013, 11:38 am
You cannot currently send a star to Joanne because you have done so within the last day.
 

AntiTeapublican Progressive News (89)
Sunday June 23, 2013, 11:47 am
It's sad how the drug companies treat American consumers. Another thing that annoys me is when a drug is sold in other countries for much less than it is sold in the United States, often for pennies on the dollar in comparison between the US and another country. Many people have died because they could not afford the drugs they needed and tried to do without, or taking a far lower amount than what they were prescribed.
 

JL A. (276)
Sunday June 23, 2013, 12:03 pm
You cannot currently send a star to AntiTeapublican because you have done so within the last day.
 

Paul Girardin (126)
Sunday June 23, 2013, 12:52 pm
Noted & shared!

It's a start ...
 

JL A. (276)
Sunday June 23, 2013, 12:54 pm
Thanks for sharing Paul. It is indeed a start.You cannot currently send a star to Paul because you have done so within the last day.
 

Theodore Shayne (56)
Sunday June 23, 2013, 1:03 pm
Thangs that jest make yah go HMMM!
 

JL A. (276)
Sunday June 23, 2013, 1:05 pm
You cannot currently send a star to Theodore because you have done so within the last day
 

Angelika R. (144)
Sunday June 23, 2013, 2:11 pm
I've never even heard of this "pay for delay" deal, makes my blood boil. I 'm in no position to assess if this ruling means to better things. Kit mentioned loopholes, -probably so. As stated zillion times before, your entire system stinks.
 

JL A. (276)
Sunday June 23, 2013, 2:49 pm
You cannot currently send a star to Angelika because you have done so within the last day.
 

Barbara D. (79)
Sunday June 23, 2013, 4:30 pm
Oh, yes. Loopholes. What makes my situation even MORE frustrating is that Cephalon was bought out by an Israeli pharmaceutical house that only distributes generics. .Nonetheless, there's a loophole by which Cephalon has been able to file injunctions against their own parent company. Go figure, I sure don't get it!
 

JL A. (276)
Sunday June 23, 2013, 4:56 pm
Thanks for the example that is probably much like what this case was all about Barbara!
 

Helen Porter (40)
Sunday June 23, 2013, 7:12 pm
Ah......the imperfection of it all.
 

Helen Porter (40)
Sunday June 23, 2013, 7:16 pm
Our health in the hands of money/power people is endangered.
 

JL A. (276)
Sunday June 23, 2013, 8:58 pm
You cannot currently send a star to Zee because you have done so within the last day.
 

John C. (81)
Sunday June 23, 2013, 9:41 pm
Much of this issue centers around R&D. Its expensive. Generics don't do R&D
I understand that as a business model. I absolutely oppose cost cutters that experiment on third world nations before they can overcharge citizens in the U.S.
 

Sherri G. (117)
Sunday June 23, 2013, 11:21 pm
It sounds like the Supreme Court ruled on the side of right but only time will tell. Thank You JL Noted
 

JL A. (276)
Monday June 24, 2013, 8:58 am
Taxdollars underwrite a lot of the R&D now when the didn't when these laws were written so there is a double protection for the corporations.
You are welcome Sherri.
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Past Member (0)
Monday June 24, 2013, 9:37 am
I have never heard of this system either seems ridiculous you have to pay all this money What happens if you
have got no money then you get no medicine and die Thats as bad as a third world country

noted thanks
 

JL A. (276)
Monday June 24, 2013, 10:45 am
You are welcome Carol
You cannot currently send a star to Carol because you have done so within the last day.
 
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