US Senate Judiciary Committee passes legislation to stop pay-for-delay patent settlements

US legislation to stop anticompetitive drug patent settlements, the bipartisan Bill S 27, Preserve Access to Affordable Generics Act - sponsored by Senators including Herb Kohl (Democrat, Wisconsin) - in the Senate Judiciary Committee, was approved last week by a vote of 10 to eight.

The bill would limit pay-to-delay patent settlements that are designed to keep lower-cost generic drugs off the market for extended periods. Under the bill, brand-name drugmakers would be deterred from settling patent disputes by paying generic rivals in exchange for promises that a copycat version of its drug will be kept off the market. The deals would be considered illegal and the Federal Trade Commission, which has long been calling for such legislation, would be given the authority to stop the agreements.

GPhA: Misguided ban on pro-consumer settlements would hinder access to affordable medicines