Just last month the Supreme Court heard arguments on the emerging (and lucrative) pharma business practice called pay-for-delay.
The U.S. Supreme Court would be wise to concur, heed the Federal Trade Commission's complaint and bring pay-for-delay to an abrupt end.
Such pay-for-delay deals arise when generic companies file a challenge at the Food and Drug Administration to the patents that give brand-name drugs a 20-year monopoly.
For more than a decade, the Commission has been toiling unsuccessfully in federal court, and in Congress, to prohibit so-called pay-for-delay or reverse payment drug patent settlements.
FORBES: FTC Orders Merged Drug Companies Not to Do "Pay-for-Delay" Settlements
Pay-for-delay deals increased from 28 to 40 in just the last two fiscal years and the deals in fiscal 2012 covered 31 brand-name pharmaceuticals, Federal Trade Commission officials said.
The American Medical Association, the giant doctors' group, believes pay-for-delay agreements undermine the balance between spurring innovation through patents and fostering competition through generics, AMA President Dr. Jeremy A., Lazarus said.
Pay-for-delay deals run counter to basic antitrust principles.
According to European Union rules the airline must re-route the passenger and pay 150 euros for flights up to 3, 500km - 75 euros if the delay to the passenger is less than two hours.
The Obama administration, backed by consumer groups and the American Medical Association, says these so-called "pay for delay" deals profit the drug companies but harm consumers by adding 3.5 billion annually to their drug bills.
Under federal rules, individuals are required to enroll in Medicare when they turn 65, or pay a premium penalty of 10% for each 12-month period they delay.
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