Questions From High Court Suggest Concerns About ‘Pay-For-Delay’ Deals


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English: The United States Supreme Court, the ...

English: The United States Supreme Court, the highest court in the United States, in 2010. Top row (left to right): Associate Justice Sonia Sotomayor, Associate Justice Stephen G. Breyer, Associate Justice Samuel A. Alito, and Associate Justice Elena Kagan. Bottom row (left to right): Associate Justice Clarence Thomas, Associate Justice Antonin Scalia, Chief Justice John G. Roberts, Associate Justice Anthony Kennedy, and Associate Justice Ruth Bader Ginsburg. (Photo credit: Wikipedia)

Topics: Supreme Court, Marketplace

Mar 26, 2013

The Supreme Court heard arguments yesterday in a case which pits brand name and generic drug manufacturers against the Federal Trade Commission.

Reuters: Supreme Court Justices Signal Uncertainty On Drug Settlements
Supreme Court justices on Monday signaled uncertainty over how they would rule on whether brand-name drug companies can settle patent litigation with generic rivals by making deals to keep cheaper products off the market. Eight justices, lacking the recused Justice Samuel Alito, asked questions that indicated concerns about such deals, but several seemed unsure how courts should approach the matter (Hurley, 3/25).

MedPage Today: SCOTUS Questions FTC Stance on ‘Pay-for-Delay
Several Supreme Court justices had hard questions about the Federal Trade Commission’s (FTC) stance against “pay-for-delay” drug patent settlements during arguments before the court on Monday (Pittman, 3/25).

In other courtroom action –

The New York Times: Salesmen In The Surgical Suite
It is not the first time patients have claimed they were harmed by Intuitive’s robotic surgical equipment, called the da Vinci Surgical System. But the Taylor case, set for trial in April, is unusual. Internal company e-mails, provided to The New York Times by lawyers for the Taylor estate, offer a glimpse into the aggressive tactics used to market high-tech medical devices and raise questions about the quality of training provided to doctors before they use new equipment on patients. Intuitive, based in Sunnyvale, Calif., declined to comment on the lawsuit but said studies showed that its robotic equipment results in better outcomes than conventional open surgery (Rabin, 3/25).

Supreme Court To Hear Case About ‘Pay To Delay’ Deals Between Generic And Branded Drug Makers


U.S. Supreme Court building.

U.S. Supreme Court building. (Photo credit: Wikipedia)

Topics: Supreme Court, Marketplace

Mar 25, 2013

Generic and the brand-name drug companies — usually fierce competitors — will be on the same side as they argue their case against the federal government. At issue is whether brand name drug manufacturers may pay generics to keep generic competitors off the market.

The New York Times: Justices To Look At Deals By Generic And Branded Drug Makers
Just about anyone who has gone to a pharmacy and paid for a prescription knows that a generic copy costs much less than the brand-name drug. The makers of those two versions of a drug, therefore, usually compete fiercely for market share and profits. But at the Supreme Court on Monday, the generic and the brand-name drug companies will be on the same side, arguing against the federal government in the legal equivalent of a heavyweight title bout (Wyatt, 3/24).

NPR: Supreme Court Hears ‘Pay To Delay’ Pharmaceutical Case
The U.S. Supreme Court hears arguments on Monday in a case worth billions of dollars to pharmaceutical companies and American consumers. The issue is whether brand name drug manufacturers may pay generic drug manufacturers to keep generics off the market. These payments — a form of settlement in patent litigation — began to blossom about a decade ago when the courts, for the first time, appeared to bless them (Totenberg, 3/25).

The Associated Press/Washington Post: High Court Weights Drug Companies‘ Payments To Delay Release Of Cheaper Generic Drugs
The Obama administration, backed by consumer groups and the American Medical Association, says these so-called “pay for delay” deals profit the drug companies but harm consumers by adding 3.5 billion annually to their drug bills (3/25).

This is part of Kaiser Health News‘ Daily Report – a summary of health policy coverage from more than 300 news organizations. The full summary of the day’s news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.