Pay-to-delay legislation offered ahead of Supreme Court ruling

Sen. Chuck Grassley

Republican Sen. Chuck Grassley is hedging his bets. The outspoken critic of pay-to-delay settlements has teamed with a Democrat colleague on a proposed legislation that would outlaw the practice, Pharmalot points out. And it is being introduced just a month before the Supreme Court will rule on the subject. Under pay-to-delay deals, branded drugmakers pay their generics-producing competitors a settlement in patent litigation to postpone launching copycats that will cut into profits. Just last month, the FTC put out a report claiming that the practice is costing taxpayers $3.5 billion a year. The industry does not see it from the same angle. It claims the deals have not delayed any generic from getting to market and have saved consumers money by setting up early generic arrangements. Of course, there have been legislative efforts tried before without success. And the whole matter may become moot after next month when the Supreme Court says what it thinks about the arrangements. Story | More