California's Pay-For-Delay Law May Be Harsher Than FTC Regulation, Could Face Legal Challenge
Governor Newsom signs bill that presumes brand-generic patent settlements are anticompetitive; AAM says the law violates US Constitution by attempting to regulate transactions outside the state.
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US off-patent industry association the AAM has blasted as unconstitutional a groundbreaking California law banning so-called ‘pay-for-delay’ deals under which brand companies pay rivals to keep generics off the market.
Now that the Senate Finance Committee has unveiled its bill and House leadership has outlined its approach, less comprehensive drug pricing legislation is losing the limelight. But may of the the bills could still have a meaningful impact on pharma, and might even become law, if only because they would be an easier way for politicians to show they were doing something to address the issue.
Only one of 232 brand-generic patent suit settlements in the US during FY 2016 contained a side deal or commitment not to market an authorized generic.