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Drug Makers Stall Generics With “Pay For Delay” Says CALPIRG

The California Public Interest Research Group says brand name drug makers are paying generic drug companies to keep cheaper products off the market.
Pauline Bartolone

(Sacramento, CA) 
Thursday, July 11, 2013

The California Public Interest Research Group or CALPIRG has released details on what it says is a practice that leads to prescription drug price inflation. 

CALPIRG calls it “pay for delay.” CALPIRG says the practice of keeping generics off the market makes consumers pay more for medications that treat conditions like cancer and high cholesterol.

CALPIRG says the average generic drug delay because of a payoff is five years – and brand name drugs cost an average of ten times more than a generic. Dr. Michael Wilkes is a Professor of Medicine at the University of California at Davis.   

“Pay for delay is sneaky, it’s devious and it’s dishonest. It serves no purpose other than to eliminate the competition,” says Wilkes.

CALPIRG says it used court records and experts to examine the cases of 20 drugs involved in the so-called “pay for delay” practice.

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