Pay for Delay

Why is it that generic drug makers sometimes delay entering the market, sometimes long after the drug patent expires? This is another tale in corporatocracy, told by Alternet:

[I]magine you’re a big-time drug company. You want to keep competitors off the market as long as possible. Your move is to basically sue the pants off the generic drugmaker for copyright infringement, setting in motion a long and tortuous legal process. And these usually end with “pay-for-delay” deals. The brand-name drug company pays the generic manufacturer a cash settlement, and the generic manufacturer agrees to delay entry into the market for a number of years. In the case before the Supreme Court, the drug company paid $30 million a year to protect its $125 million annual profit in AndroGel, a testosterone supplement. It’s hard to see this as anything but bribery, designed to preserve a lucrative monopoly for the brand-name drug maker. In fact, this is what the Federal Trade Commission has argued for over a decade. They consider it a violation of antitrust law, arguing that the exchange of cash gives the generic manufacturer a share of future profits in the drug, specifically to prolong the monopoly. As SCOTUSBlog summarizes from the FTC’s court brief, in the regulator’s view, “Nothing in patent law … validates a system in which brand-name companies could buy off their would-be competitors.” Indeed, everyone wins with pay-for-delay but the consumer: the FTC estimates that the two dozen deals inked in 2012 alone cost drug patients $3.5 billion annually, with the brand-name and generic manufacturers splitting the ill-gotten profits.

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As If We Didn’t Know

Politics dictated FDA policy? Say it isn't so! According to this NY Times piece, the Bush Administration (they get the blame because, after all, he was the Decider) bade the FDA to meddle with contraception when it suited a certain agenda. What I find so delightful about this, as with the Dover PA decision on Intelligent Design in the classroom, is that a Republican judge, this time a Reagan appointee, made the call. The thing is, contraception and all that it implies really ought to be a conservative issue. I mean, really---it has all the hallmarks of the last 60 years of conservative philosophy built on the rights of the individual, the freedom from interference being chief among them. You would think conservatives would have leapt on this a long time ago, staking it out as exemplary of the idea of American Individualism and the freedom to act as a moral agent, dictating one's own destiny and making determinations about how one will live one's life free from government meddling. Handing both men and women the tools---provided by the free market, to boot---to manage their own lives in accordance with their formulation as individuals of the American Dream should have been a slam dunk for conservatives. They should have been cheering for it since the days of Margaret Sanger. What is more, given the attitude of the communist states, which dismissed Sanger and the entire notion of family planning as a bourgeois, capitalist plot to undermine the growth of the collective, this should have been part and parcel of rearing a generation of people cumulatively opposed to Soviet style socialism and collectivism. Everything about the Choice movement smacks of good ol' fashion American Values! It is the perversity of the debate that is ironic, that it should be those who are castigated as liberal soldiers in the march to socialism and its destruction of all things individualist and true blue American who are the champions of the idea that people ought to have full say in the when and if of having children. How did this happen?

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Corporations make illegal drugs legal

Well, not exactly, but the big picture is a disturbing one from the perspective of the millions of people criminally prosecuted every year for seeking to self-medicate using street drugs .  If all of those mind altering street drugs are really "bad," then they should stay illegal. But maybe it's not so…

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