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Supreme Court Rules FTC Can Challenge Deals Intended To Delay Release Of Generic Drugs

When a generic version of a drug comes on the market, the holder of the brand-name drug’s patent stands to see a steep drop in sales as many customers switch to the lower-price option. Thus, some companies will go to great lengths to delay the release of generics. One such method, dubbed “pay-for-delay,” involves the patent-holder suing manufacturers of generics and then settling for millions of dollars with the agreement that the generic suppliers will hold off on releasing their product. Today, the U.S. Supreme Court ruled that the Federal Trade Commission has the right to challenge these sorts of deals. [More]