A PYMNTS Company

US: CA bill would fight deals that delay generic drugs

By  |  August 1, 2019

California’s attorney general Xavier Becerra called on the state legislature to pass a bill he said would make it easier to crack down on the “collusive” Pharma deals.

The bill, introduced by assembly member Jim Wood (Democrat – California District 2), would be the first of its kind in the nation, Becerra said. It would classify all agreements in which “anything of value” is exchanged between brand-name and generic drugmakers to delay the release of generic versions as anticompetitive, and therefore illegal. This would help the state Department of Justice bring cases against brand-name or generic drugmakers by shifting the burden of proof: it would be up to the companies to prove their deals are legitimate.

“Every pharmaceutical company has the right to get a return on their investment and on the products they produce that in many cases save lives, but they should not be allowed to exploit the desperation and the need of an American in order to make money,” Becerra said.

The state Assembly approved the measure in May. It is now under consideration in the state Senate.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.