Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/18/2013 (1 year ago)

Catholic Online (www.catholic.org)

U.S. Supreme Court says that while 'pay to delay' is not illegal, it hampers patients

Those in need of far less costly, generic drugs for their medical conditions got a boost this week by the Supreme Court. A longstanding practice by the U.S. pharmaceuticals industry to pay producers of generic copies to hold off introducing those low-cost drugs into the marketplace - known as "reverse payments," may now be challenged in court. Known colloquially as "pay to delay," the practice has been called anti-competitive and harmful for consumers, who are forced to pay more for drugs.

Brand-name drugs comprised just 18 percent of all U.S. prescriptions written in 2011, according to IMS Health. Yet they accounted for almost three quarters of revenue for the industry, worth some $320 billion a year.

Brand-name drugs comprised just 18 percent of all U.S. prescriptions written in 2011, according to IMS Health. Yet they accounted for almost three quarters of revenue for the industry, worth some $320 billion a year.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

6/18/2013 (1 year ago)

Published in Health

Keywords: Generic drugs, pharmaceuticals, Supreme Court, Hatch-Waxman Act of 1984, 'pay to delay'


LOS ANGELES, CA (Catholic Online) - The decision by the high court did not declare reverse payments to be outright illegal, as previously hoped, it does allow the Federal Trade Commission (FTC) to move forward with court cases against these arrangements. The decision also reversed previous rulings by lower courts.

"[T]he specific restraint at issue has the 'potential for genuine adverse effects on competition,'" Justice Stephen Breyer wrote for the majority in the 5-3 ruling. "Payment for staying out of the market keeps prices at patentee-set levels and divides the benefit between the patentee and the challenger, while the consumer loses."

Competition from generics can often lower drugs prices by up to 90 percent. The FTC, meanwhile, has estimated that agreements to push off such competition cost consumers some 3.5 billion dollars per year in the United States alone. The patents in question will likely not extend overseas, so the ruling will likely have little immediate impact outside of the United States.

Brand-name drugs comprised just 18 percent of all U.S. prescriptions written in 2011, according to IMS Health. Yet they accounted for almost three quarters of revenue for the industry, worth some $320 billion a year.

"The incentives to engage in research and development are already out there without these kinds of agreements," Scott Nelson, an attorney with Public Citizen, a public interest watchdog, told IPS.

"Signing one of these agreements will mean you may have to fight the U.S. government. Hopefully, the impact will be that companies think twice before entering into these types of agreements, which are basically just arrangements to split up profits under which consumers lose out."

The recent decision calls forth the memories of the Hatch-Waxman Act of 1984, meant specifically to push generic drugs onto the market more quickly. As Nelson noted, this law offers incentives for the development of new drugs such as decades-long patents.

The decision will let generics manufacturers to challenge these patents for a variety of reasons. According to a study by the FTC, until the early 2000s, the generics companies prevailed in these challenges almost three quarters of the time.

A version of this story was first published by Inter Press Service news agency.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Health

Ancient Siberian brain surgeries reenacted in present day Watch

Image of Amazingly, these brain surgeries were accomplished with little more than crude knives.

By Catholic Online (NEWS CONSORTIUM)

It is amazing what Russian surgeons of 2,300 years ago were capable of. Delicate brain surgeries - found in the skeletal remains of Siberian patients, point to great sophistication and skill. Modern day doctors have since recreated these surgeries, opening a ... continue reading


Mystery illness leaves more than 100 kids paralyzed with poliolike symptoms Watch

Image of Doctors have no idea what is really causing paralysis in more than 100 kids throughout the United States.

By Abigail James (NEWS CONSORTIUM)

More than 100 kids have been infected with a mysterious illness that causes poliolike symptoms of paralysis in the United States since August 2014. LOS ANGELES, CA (Catholic Online) - Reports of the illness began surfacing around the same time enterovirus D68, a severe ... continue reading


Growing the Church in China

Image of

By John Smagula

The world's best teas are grown in China, but many of these teas are unknown in the United States. Remote tea farms in exotic locations produce teas that rarely reach the American teacup. Of the 1.75 million tons of tea that China produces each year, less than 2% is ... continue reading


Teenage Mutant Ninja mosquitoes may be unleashed in the Florida Keys Watch

Image of It will mark the first time that insects with modified DNA will be set loose in a residential U.S. neighborhood.

By Catholic Online (NEWS CONSORTIUM)

While it may sound like a science fiction film straight out of the 1950s, genetically modified mosquitoes may shortly be unleashed on the Florida Keys. While sounding very sinister and threatening, the reason is benign. British researchers win approval to use ... continue reading


Is this it? Has the cure for cancer been found? New proton therapy offers great hope to cancer patients Watch

Image of There are currently 121 Proton Therapy centers around the world, according to CNN.

By Abigail James (NEWS CONSORTIUM)

The battle to cure cancer is one that has been continuously fought for decades. Chemotherapy, radiation, monoclonal antibodies and surgery have all had their fare share in beating cancer. LOS ANGELES, CA (Catholic Online) - Chemotherapy has had many success stories, ... continue reading


KILLER FLU: 8.5 percent of all deaths nationally, ending January 10 were due to pneumonia and influenza Watch

Image of It most also be noted that the center does not track adult deaths, but does keep track of the number of children who die after having the flu.

By Catholic Online (NEWS CONSORTIUM)

If you're a bit under the weather, join the club. According to the Centers for Disease Control, this year's flu season has returned to an epidemic level. For the week ending January 10, 8.5 percent of all reported deaths were due to influenza or pneumonia. LOS ANGELES, ... continue reading


Bishops Invite All Catholics to Make a Digital Pilgrimage for Life

Image of

By USCCB Secretariat of Pro-Life Activities

When people hear the word "pilgrimage," many think of far-off destinations, such as Lourdes, Fatima, or Santiago de Compostela. Today, in the digital era, we have the opportunity to make a pilgrimage without ever leaving our hometown. In fact, the U.S. Bishops are ... continue reading


Walking, for life: Brisk 20-minute stroll found to extend life Watch

Image of A 20-minute walk at a vigorous pace or a cycle ride of the same duration moves an individual from being classed as inactive to moderately inactive.

By Catholic Online (NEWS CONSORTIUM)

Walking has always been the favored low-impact exercise that most everyone can accomplish. Now, researchers say that a daily 20-minute walk could reduce the risk of an early death by almost a third. LOS ANGELES, CA (Catholic Online) - "Couch potatoes," those who ... continue reading


Amazing new spinal implant heals paralysis Watch

Image of Composed of silicone and platinum with stretchable gold interconnects that transmit and transfer electrical signals.

By Abigail James (NEWS CONSORTIUM)

For years researchers, doctors and scientists have tried to find a way to bring movement back to paralyzed patients. Recent progress has been made; flexible, soft spinal implants that send electrical signals are showing strong potential in healing paralysis, according ... continue reading


Do you have this cancer-causing gene? Scientists find gene that causes deadly form of breast cancer Watch

Image of A new study has revealed the gene that causes one of the most aggressive and hard to treat forms of breast cancer, and may point the way to an effective treatment or preventative method.

By Matt Waterson (NEWS CONSORTIUM)

There is new hope for women suffering with, or at high risk for, breast cancer. LOS ANGELES, CA (Catholic Online) - Researchers from the Wellcome Trust Sanger Institute in England have discovered what triggers triple-negative breast cancer, which is fast growing, ... continue reading


All Health News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Deuteronomy 18:15-20
15 Yahweh your God will raise up a prophet like me; ... Read More

Psalm, Psalms 95:1-2, 6-7, 7-9
1 Come, let us cry out with joy to Yahweh, acclaim ... Read More

Gospel, Mark 1:21-28
21 They went as far as Capernaum, and at once on the ... Read More

Reading 2, First Corinthians 7:32-35
32 I should like you to have your minds free from all ... Read More

Saint of the Day

Saint of the Day for February 1st, 2015 Image

St. Brigid of Ireland
February 1: Brigid was probably born at Faughart near Dundalk, Louth, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter