California is first US state to ban pay-for-delay deals


8 October 2019 - California has become the first US state to ban the pharma industry practice of paying rivals to keep lower-cost generics off the market.

State Governor Gavin Newsom signed bill AB 824 yesterday, making it unlawful for drugmakers to settle patent infringement claims filed by generic manufacturers by providing “anything of value” as this will automatically be considered anti-competitive and open to civil litigation.

“California will use our market power and our moral power to take on big drug companies and prevent them from keeping affordable generic drugs out of the hands of people who need them,” said Newsom in a statement.

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Michael Wonder

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Michael Wonder