It is estimated that generic medications saved the U.S. healthcare system, including taxpayers and patients, an estimated $193 billion in 2011.
Today, the Supreme Court will hear arguments about "pay for delay" deals between pharmaceutical companies and makers of generic medications. In the "pay for delay" deal, a generic drugmaker files a challenge to the patent held by a brand-name drugmaker, hoping to prove the patent is flawed and thus allowing a generic version of the drug to be offered before the patent ends. In turn, the brand-name drugmaker sues its generic counterpart. In lieu of years of expensive litigation, the companies usually settle, with the brand-name pharmaceutical company paying a large settlement amount to the generic medications manufacturer.
Critics of such settlements claim these deals cost health care consumers over 3 billions dollars annually because they could be saving money on generic drugs if the companies were allowed to win the lawsuits and begin marketing their generic products earlier.
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