Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/18/2013 (2 years 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 (2 years 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 July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Health

Georgia mother dies from mysterious disease causing brain inflammation Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

A Georgia mother dismissed her sickness as a summertime flu; now she has passed away from a cardiac arrest, leaving her husband and their two daughters behind. Stefanie Ballard is believed to have contracted the disease after spending time with her children in the pool ... continue reading


Heart pump, size of a golf ball, could change lives of millions of patients Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Retired father-of-three, 63-year-old Harry Chivers suffered a heart attack last year. His health failing, he anxiously awaited for a possible heart transplant when he was offered the chance to become a pioneer in heart health research. Fitted with a heart pump ... continue reading


Do you know what a can of Coke really does to your body? Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

Although Coke and sodas are a favorite for people all over the world, sodas are something that slowly changes our health and can lead into a number of diseases from the high amount of processed sugar. Starting from the first 10 minutes after a can of Coke is consumed, ... continue reading


Discovery of five different kinds of prostate cancer heralded as breakthrough Watch

Image of While many men have prostate cancer, it can grow so slowly it might not cause any problems until the patient eventually dies of something else.

By Catholic Online (NEWS CONSORTIUM)

Scientists in the United Kingdom have discovered the most common cancer among men can be classified into five types, depending on its DNA. This is a breakthrough in prostate cancer research, and once the type of cancer is identified, the patient's survival rate ... continue reading


8-year-old boy becomes youngest double-hand transplant patient Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

Surgeons believe 8-year-old Zion Harvey is the youngest to receive a double-hand transplant. The boy lost both of his hands over a severe infection years ago and opted to go through a transplant with the support of his parents. After the initial success of the ... continue reading


World's first malaria vaccine wins approval from European drug regulators Watch

Image of Mosquirix must first win agreement from African governments as the vaccine only offers only partial protection.

By Catholic Online (NEWS CONSORTIUM)

The world's first malaria vaccine is a go with European drug regulators after it was recommended safe and effective for babies at risk of the 'mosquito-born disease' in Africa. LOS ANGELES, CA (Catholic Online) - Called Mosquirix, the vaccine was developed by ... continue reading


560-pound man sets out to bike across the U.S. to lose weight and save his marriage Watch

Image of [Photo by: ABC News]

By Talia Ramos (NEWS CONSORTIUM)

To try to live a healthy life, get a job and save his failing marriage, a 560-pound man decided to embark on a biking journey across the United States. He has already traveled about 90 miles since he started last month and has lost around 60 pounds during the first two ... continue reading


Catholic organization's approach to female reproductive health a 'game changer' Watch

Image of Together with his colleagues, Dr. Thomas Hilgers developed NaPro (Natural Procreative) Technology. In Omaha in 1985, they founded the Pope Paul VI Institute for the Study of Human Reproduction, and in 1999 formally created the Creighton Model FertilityCare System.

By Gabrielle Cubera, CNA EWTN News

With the hope of providing authentic and ethical health care for women, Dr. Thomas Hilgers, creator of Natural Procreative Technology, has worked for decades to establish a medical network that studies, understands, and treats the female fertility cycle. Omaha, ... continue reading


Have scientists found the key to shut off aging? New study with worms finds success Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Scientists have uncovered how to switch off the aging process, during a recent study with worms, which could possibly lead to the process being successful in humans. MUNTINLUPA, PHILIPPINES (Catholic Online) - The new study showed that adult cells of worms shortly ... continue reading


New eye drops may soon replace cataract surgery Watch

Image of Vision could cease altogether if cataracts remain untreated. Cataracts cause more blindness worldwide than any other eye condition.

By Catholic Online (NEWS CONSORTIUM)

Inexpensive and easy to administer, a new eye drop may soon make cataract removal surgery obsolete. A frequent bane of existence that afflicts the elderly, the new drops dissolves the clumps of protein that clouds vision. LOS ANGELES, CA (Catholic Online) - Cataract ... 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, Numbers 13:1-2, 25--14:1, 26-29, 34-35
1 Yahweh spoke to Moses and said,2 'Send ... Read More

Psalm, Psalms 106:6-7, 13-14, 21-22, 23
6 Like our ancestors, we have sinned, we have acted ... Read More

Gospel, Matthew 15:21-28
21 Jesus left that place and withdrew to the region ... Read More

Saint of the Day

Saint of the Day for August 5th, 2015 Image

St. Addal
August 5: A disciple of Christ sent by St. Thomas to the court of King ... 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