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Sep. 12, 2019

Senate approves bill that would ban “pay-to-delay” schemes blamed for keeping generic drugs off the market

The bill invokes the Cartwright Act, a state antitrust law, and applies it to drug makers. But the situation AB 824 addresses was created in part by the Hatch-Waxman Act, a 1984 federal law intended to lower drug prices and speed generics to market.

The Senate approved a bill Wednesday that would ban "pay-to-delay" schemes blamed for keeping generic drugs off the market.

"Prescription drug prices are too damn high," said Sen. Robert Hertzberg, D-Van Nuys, while presenting AB 824. He said 17% of the cost of "overall health care services in the United States are prescription drugs."

The bill states that patent infringement claim settlement i...

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