"This provision severely devalues all underlying patent rights and could seriously undermine the incentive to develop novel new forms of medicines and other technologies, " says BIO chief Jim Greenwood.
The Petitioners asked the Court to review whether federal antitrust laws prohibit the settlement of patent litigation between a branded drug maker and a generic drug company which include a financial incentive for the generic company to hold off marketing its product for a time period.
After a chemical loses its patent protection, and can be made in far cheaper generic versions, there is no financial incentive for a drug company to pay for large clinical studies.