Bloomberg Law
March 11, 2019, 6:35 PM

Pay-for-Delay Drug Deals Could Jeopardize Medicare Payments

Jacquie Lee
Jacquie Lee

Drug companies using backdoor deals to delay cheaper drugs from reaching the market would face financial penalties if parts of the Trump administration’s proposed budget is approved by Congress.

Brand drug companies have long been accused of paying generic drugmakers to delay selling cheaper versions of their branded products when the patent expires. The tactic allows brand drugmakers to extend the amount of time they can exclusively rake in profits for expensive medicine.

The Trump administration is angling to punish companies that do that by cutting back on the payments they can receive when they sell drugs through the federal ...