Attorney General Becerra Applauds Ninth Circuit Ruling Denying Challenge to California’s Landmark Pay-for-Delay Law

Friday, July 24, 2020
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SACRAMENTO – California Attorney General Xavier Becerra applauded today’s ruling by the U.S. Court of Appeals for the Ninth Circuit, rejecting a challenge by a group of generic drug manufacturers, the Association for Accessible Medicine (AAM), against California’s landmark law tackling pay-for-delay agreements. In the decision, the Court held that AAM lacks standing to challenge the law.

“Today’s victory is a win for every family who has unfairly shouldered higher prices for life-saving medicine, simply because pharmaceutical companies staved off competition to pocket higher profits," said Attorney General Becerra. “Californians shouldn’t have to pay an arm and leg to afford a prescription, particularly amidst a public health crisis of historic proportions. This Ninth Circuit ruling should serve as a reminder that the well-being of loved ones must come first.”

The California law, AB 824, combats illegal, secretive deals between pharmaceutical companies in which one drug company pays its competitor to delay the competitor’s research, production, or sale of a competing version of its drug. These collusive agreements, known as “pay-for-delay” agreements, stifle competition and hike the price patients and employers pay for prescription medicines. AB 824 is the first state law in the nation to tackle pay-for-delay agreements.

A copy of the ruling is available here.

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