Generic Drugs: The Pay-for-Delay Problem
Hardback | English
Brand-name pharmaceutical companies can delay generic competition that lowers prices by agreeing to pay a generic competitor to hold its competing product off the market for a certain period of time. These so-called pay-for-delay agreements have arisen as part of patent litigation settlement agreements between brand-name and generic pharmaceutical companies. Pay-for-delay agreements are win-win for the companies: brand name pharmaceutical prices stay high, and the brand and generic share the benefits of the brand''''s monopoly profits. Consumers lose, however: they miss out on generic prices that can be as much as 90 percent less than brand prices. For example, brand-name medication that costs $300 per month, might be sold as a generic for as little as $30 per month. This book examines the pay-for-delay'''' program and how drug company pay-offs cost consumers billions.
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