Last week, the Supreme Court sided with the Federal Trade Commission in a case challenging “pay-for-delay” and other payment agreements that pharmaceutical companies make with rival companies to keep cheaper generic versions of drugs off the market. In the Federal Trade Commission v. Actavis case the Court ruled that regulators can challenge deals between brand-name drug companies and generic rivals that delay cheaper medicines from going on sale, which can increase costs to consumers by billions of dollars.
However, the Court’s 5-3 vote denied the Federal Trade Commission’s request to declare “pay-for-delay” deals illegal. The case centered around drug company Solvay’s agreement with four generic companies to suspend sales of the generic versions of Androgel, a gel for men with low testosterone.
“Seniors and consumers should celebrate the decision,” said Ruben Burks, Secretary-Treasurer of the Alliance for Retired Americans. “However, while it is great that regulators can challenge these unholy deals to keep generic drugs off the market, it would have been even better if the deals had been ruled illegal altogether.”
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