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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Health

Milwaukee man shocks distraught family by 'coming back to life' Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

When a man from Milwaukee was pronounced dead last week, everyone, from his girlfriend to his brother, was immediately notified. The first responders made all the necessary arrangements for the corpse to be transported to the morgue. While all the preparations were ... continue reading


Revolutionary! Robotic arm controlled by thought provides breakthrough for paralyzed Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

An exciting new breakthrough in robotics may now enable the paralyzed to command helpmates with everyday activity. The breakthrough came in form of 34-year-old Erik Sorto, paralyzed from the neck down after being shot in the back 13 years ago. Thanks to a ... continue reading


Ancient Chinese plant 'thunder god vine' studied as miracle drug for obesity Watch

Image of In developed nations, where food is inexpensive and plentiful, obesity has been an ongoing problem. Obesity causes heart disease, diabetes and increases the risk for heart attack and stroke.

By Catholic Online (NEWS CONSORTIUM)

A traditional Chinese medicine known as "thunder god vine" is being heralded by some scientists as the new miracle drug in the war against obesity. Scientists in an article published in the medical journal Cell last week said an extract made from the plant ... continue reading


Brain reset: Scientists uncover unusual way to get rid of brain disorders Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

By implanting special cells that emit GABA into the brains of adult mice scientists found a way to cure certain brain disorders, like lazy eye. Initially an almost impossible endeavor, the experiment led a team of scientists to a way to reset the brain and basically ... continue reading


Health in the United States: Which cities are the healthiest? Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

The American College of Sports Medicine has recently released their 2015 American Fitness Index, naming the top three fittest and the least fit cities in the entire United States. MUNTINLUPA, PHILIPPINES (Catholic Online) -  Among the thousands of cities surveyed ... continue reading


Nebraska orders STATE OF EMERGENCY over H5N2 avian flu virus Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A type of avian flu, and unfortunately the most lethal to hit the United States, has posed several concerns for farmers and scientists. So far, the H5N2 strain of the bird flu virus has already killed 15,000 turkeys in Minnesota alone. Now, over 33 million birds in 16 ... continue reading


Why a handshake just might save your life Watch

Image of Handshakes may be able to determine your risk for heart disease or other illnesses.

By Matt Waterson (NEWS CONSORTIUM)

Are you worried about a heart attack or stroke? Well there may be an easy way to tell if you are at greater risk for either of these diseases, are near death or seriously ill, and you don't need anything more than a hand and a partner. LOS ANGELES, CA (Catholic ... continue reading


Are you afraid of needles? Scientist believes he found way to reduce injection pain Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A lot of people, the young and old alike, are really frightened of getting injections, even just the thought of it. The good news is that scientists have discovered a simple answer. MUNTINLUPA, PHILIPPINES (Catholic Online) - Spanish scientists believe that holding ... continue reading


Woman gives shocking birth to baby born with bladder outside of body Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

Born with a rare congenital defect, Baby Lila underwent a unique surgery, shortly after she was born with her bladder outside the body. This defect was detected when the doctor couldn't find her bladder in a sonogram conducted during the 22-week prenatal appointment. ... continue reading


What do healthy people eat for breakfast? 11 healthy breakfast choices from dietitians and experts Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

What we eat in the mornings have an effect on our energy levels throughout the day. Here, registered dietitians, personal trainers, health editors and nutritionists, suggest healthy breakfasts for a healthy morning start, with some help from BuzzFeed. MUNTINLUPA, ... 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, Sirach 35:1-12
1 One who keeps the Law multiplies offerings; one who ... Read More

Psalm, Psalms 50:5-6, 7-8, 14, 23
5 'Gather to me my faithful, who sealed my covenant ... Read More

Gospel, Mark 10:28-31
28 Peter took this up. 'Look,' he said to him, 'we ... Read More

Saint of the Day

Saint of the Day for May 26th, 2015 Image

St. Philip Neri
May 26: If one had to choose one saint who showed the humorous side of ... 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