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US: SCOTUS hints at pay-for-delay ruling

By  |  March 27, 2013

Reports say Justices on the Supreme Court seemed skeptical of the pay-for-delay deals after Monday’s arguments, hinting that the Court may soon allow lawsuits against drugmakers for the agreements. Justice Elena Kagan stated that the agreements – in which brand name drugmakers pay for generic companies to keep their versions of drugs off shelves – act “to the detriment of consumers.” According to the Federal Trade Commission, 2012 yielded 40 pay-for-delay deals in the sector. Several companies have been sued for the deals, despite their argument that the agreements are valid patent settlements. Additionally, other Justices on Monday suggested they were disapproving of the FTC’s proposed method of determining whether the agreements hamper competition. Justice Anthony Kennedy said that a possible result could be banning brand name drugmakers from paying generic companies more than those companies would expect to be paid from winning patent lawsuits if brand name companies were to sue.

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