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Pay-to-delay decision

This Tuesday it was announced that the US Supreme Court had declined to hear an appeal from the US Appeals Court which focused on the pay-to-delay deal between Teva Pharmaceuticals and GlaxoSmithKline. The concept of pay-to-delay is that innovator companies will pay a generic company which is about to file a generic version of its product to delay the filing.

The denial by the Supreme Court to grant certiorari means that the lowers courts ruling stands. In this case, that decision is that cash is not the only means to determine if the delay violates the antitrust acts. That the Supreme Court denied the case says something about their thinking. At question was an earlier ruling the Court had made. This denial, in essence, affirms that decision.

It is important for companies to understand decisions like these. A knowledgeable legal consultant can certainly help, as can a good Regulatory Law consultant. Knowing what you can do to safeguard your product from copies is important. Know how to do so effectively is paramount.

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