This (Forbes) article highlights the problem in the drug market concerning its anti-competitiveness due to certain deals that are taking place between generic companies and brand-name companies, and how the legal sector can affect economic policies. The US Supreme Court met earlier this week to discuss whether the drug industry deals called “pay-to-delay” are unlawful. Used by name-brand pharmaceutical companies, these deals involve preventing the production of generic products, which costs consumers roughly $3 billion a year.
This related article (NPR) better details what the pay-to-delay deals are as well as the legal issues, as opposed to the Forbes article, which discusses how the brand-name companies have benefited from the deals. If outlawed, these deals will cease, which would allegedly increase the competitiveness of the market since the generic companies would no longer receive compensation for delaying production. This is the Court’s aim. For reference, the generics companies are on board with the deals, and are fighting in favor of preserving them alongside the brand-name companies. To my knowledge, the Court has not yet reached a decision.