Brand-Generic Pay-For-Delay Deals May Become Extinct, FTC Finds

Only one of 232 brand-generic patent suit settlements in the US during FY 2016 contained a side deal or commitment not to market an authorized generic.  

3D rendering of Tyrannosaurus Rex near extinction. - Illustration
Will pay-for-delay deals between brand and generic companies go the way of T. Rex? • Source: Shutterstock

The US Federal Trade Commission found that only one patent settlement agreement between brand and generic companies in fiscal year 2016 contained a side deal or commitment not to market an authorized generic, suggesting that so-called pay-for-delay deals may become a thing of the past.

In its latest report on brand-generic patent settlements, released on 23 May, the FTC does not use the term "pay-for-delay," as it has in past reports. But it indicates there was one such deal among the 232 final settlements in FY 2016

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