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US: The California Supreme Court heard arguments on “pay-for-delay” agreements

By  |  March 4, 2015

The California Supreme Court heard arguments Tuesday in a case that could give the pharmaceutical industry more guidance on the legality of so-called “pay-for-delay” agreements.

A class of consumers alleges that Bayer Corp. illegally paid several generic drugmakers nearly $400 million to postpone plans to release generic versions of the antibiotic Cipro.

“With a payment that size, what they’re paying for is insulation from competition,” Lemley said, arguing Bayer had no other justification for the deal, not even avoiding litigation costs.

Justice Goodwin Liu’s questions suggested he might be leaning toward a “but-for” test that would ask whether a generic version of the drug would have entered the market earlier but for the settlement, The Recorder reported.

 

Full Content: The Recorder

 

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