Drug Policy 101: Pay-for-Delay

The term “pay-for-delay” refers to a tactic used by brand name drug manufacturers to delay a potential competitor from bringing a generic drug alternative to market. Usually in the form of a cash payment, pay-for-delay transactions result from a patent dispute settlement between a brand name and generic company.

The Federal Trade Commission (FTC) has cited these arrangements as anticompetitive, and estimates that they cost consumers and taxpayers $3.5 billion in higher drug costs every year due to a lack of competition from cheaper generics.

This paper:

  • Provides background on drug patents and market exclusivity
  • Discusses how pay-for-delay impacts drug pricing and competition among drug manufacturers
  • Highlights recent stakeholder actions around pay-for-delay

Full Paper: Drug Policy 101: Pay-for-Delay

Other papers in this series: