New Calif. Pay-For-Delay Law May Hurt Those It Aims To Help

Law360 (November 5, 2019, 2:49 PM EST) -- In the continuing effort to reduce the costs of pharmaceuticals, a new California law governing patent settlement agreements was signed into law on Oct. 7. The statute attempts to prevent so-called “pay-for-delay” or “reverse-payment” settlements in which a branded drug company pays a generic pharmaceutical company purportedly to delay the generic coming to market.

Specifically, the statute states that such agreements “shall be presumed to have anticompetitive effects” if the generic company receives “anything of value” from the company asserting patent infringement. Because this new law goes further than courts or legislation have gone in the past, pharmaceutical companies litigating patent...

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