White House support to limit pay for delay makes inclusion in final healthcare bill more likely
The article discusses the White House's support for limiting the practice of reverse payment deals between brand and generic pharmaceutical companies. These agreements, also referred to as pay-for-delay settlements, occur when a pharmaceutical company accused of patent infringement pays the patentee to dismiss its lawsuit. These transactions have come under criticism by some groups, including the Federal Trade Commission, who claim they violate antitrust laws and are a form of horizontal market allocation.
Mr. Werner believes that support from President Obama greatly increases the chances that language will be included in a healthcare reform package prohibiting these deals. Such language was introduced in the U.S. Senate last fall and indicated that to complete a pay-for-delay settlement, companies must provide clear and convincing evidence that the pro-competitive benefits of the agreement outweigh the anti-competitive effects of the agreement.