Obama Wants 'Pay-For-Delay' Ban Added To Senate Health Care Bill

Abstract

The agreements are referred to as "pay-for-delay" deals or "reverse payments" because generics end up receiving a payment to settle claims that they infringed a brand-name drug's patent. Because the first generic to instigate a patent challenge is entitled to 180 days of market exclusivity, the deals can substantially delay generic drug availability and, moreover, competition between two generic drug companies.