KHN Morning Briefing

Summaries of health policy coverage from major news organizations

High Court: Feds Can Sue Pharmaceutical Companies Over Deals To Delay Generic Drug Sales

The Supreme Court ruled Monday that the Federal Trade Commission can challenge name brand drug makers for potential antitrust violations.  

The New York Times: Supreme Court Lets Regulators Sue Over Generic Drug Deals
Pharmaceutical companies that pay rivals to keep less-expensive generic versions of best-selling drugs off the market can expect greater federal scrutiny after a Supreme Court ruling on Monday. In a 5-to-3 vote, the justices effectively said that the Federal Trade Commission can sue pharmaceutical companies for potential antitrust violations, a decision that is likely to increase the number of generic drugs in the marketplace and benefit consumers (Wyatt, 6/17).

Reuters: Supreme Court Says FTC Can Sue Over Deals That Delay Generic Drug Sales
The Supreme Court ruled on Monday regulators can challenge deals between brand-name drug companies and generic rivals that delay cheaper medicines from going on sale, which regulators say increase costs to consumers by billions of dollars (Hurley and Bartz, 6/17).

Medpage Today: Supreme Court Split On Pharma 'Pay For Delay' Deals
So-called "pay-for-delay" arrangements between generic and brand-name drug companies are not inherently legal, and each instance must be considered on a case-by-case basis, the Supreme Court ruled Monday. In the 5-3 decision overruling the 11th Circuit Court of Appeals, Justice Stephen Breyer, writing for the majority, listed five reasons why the appellate court erred in giving blanket immunity to pay-for-delay agreements, in which brand-name drugmakers pay or compensate generic drug companies in exchange for a later entry date of the cheaper generic version of a drug (Frieden, 6/17).

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