California Bill Would Abolish Payments to Delay Generic Drugs

California officials want to get ahead of Congress with a state law to ban drugmakers from brokering agreements that delay generic drugs from reaching the market.

A new bill backed by California Attorney General Xavier Becerra (D) targets settlements in drug patent infringement lawsuits between brand-name prescription drugmakers and generic drugmakers. The agreements often contain “pay-for-delay” terms that pay generic drugmakers to keep their versions of brand name drugs off the market.

California’s bill, A.B. 824 by Assemblyman Jim Wood (D), takes a similar approach as does the federal bill, S. 64, introduced Jan. 9 by U.S. Sens. Amy ...