If you can believe it, even after a drug goes off patent, drug companies can pay the generic drug manufacturers to hold off making the generic version of the drug. It’s called “pay for delay”? It’s how the drug companies keep drug prices sky high after drugs go off patent. And, according to a report by U.S. PIRG, at least eight of the ten largest drug companies do just that. Pay for delay stifles competition, which brings down drug prices, keeps the price of the drug high and generates big additional profits for the drug companies.
Pay for delay means that consumers pay big time for drugs even when they go off patent. Generic drugs can cost as much as 85 to 90 percent less than the brand-name drug equivalent. So, pay for delay ends up costing us an estimated $3.5 billion in high drug prices according to the FTC.
If you’d like Congress to address this injustice, click here to go to the US PIRG web site.