header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Clear
Clear
66°F
 
Calendar
Today in
S.C.V. History
September 26
1876 - California oil industry born as CSO No. 4 in Pico Canyon becomes state's first commercially productive oil well [story]
Pico No. 4


California’s ban on drug industry pay-for-delay deals remains intact after a Ninth Circuit panel ruled Friday that a pharmaceutical lobby lacked standing to challenge the landmark consumer-protection law.

The first-in-the-nation law outlaws a common industry practice known as “pay-for-delay” where large pharmaceutical companies pay or incentivize a competing company to keep cheaper generic drugs off the market. Critics say the backroom deals choke competition and spike prescription drug costs.

Shortly after the bill was signed last fall by Governor Gavin Newsom, a group representing generic drug manufacturers sued the state in federal court, claiming the law eliminates negotiating tools and forces companies to rely on costly litigation. A federal judge in Sacramento quickly denied the Association for Accessible Medicines’ request for temporary relief and the law went into effect at the beginning of the year.

On appeal, a Ninth Circuit panel ruled it wasn’t persuaded by the association’s argument that the law creates a “substantial risk” of injury to the drug makers it represents. The panel denied the appeal for lack of standing and directed the lower court to dismiss the case without prejudice.

“The association has not established standing based on a threat of imminent or ‘certainly impending’ prosecution,” the unpublished order states.

California Attorney General Xavier Becerra and the proponents defended the ban as being critical to the state’s effort to weed out shady industry practices and reduce drug costs.

“Today’s victory is a win for every family who has unfairly shouldered higher prices for life-saving medicine, simply because pharmaceutical companies staved off competition to pocket higher profits,” said Becerra in a statement. “Californians shouldn’t have to pay an arm and leg to afford a prescription, particularly amidst a public health crisis of historic proportions.”

Pay-for-delay agreements are a staple of the pharmaceutical industry and were largely exposed by a 2003 federal law which requires companies to file the agreements with federal regulators.

According to the Federal Trade Commission, the deals cost consumers $3.5 billion in drug costs annually.

The law, Assembly Bill 824, was inspired in part by a California study that found the deals delayed the public release of generic options by an average of five years and forced consumers to pay up to 33 times more for the brand-name options. It cleared the Legislature with bipartisan support on the last week of the session and Newsom quickly signed it into law. To enforce the law, lawmakers granted the attorney general’s office the power to sue companies within four years of alleged violations.

In their bid to overturn AB 824, the association argued the statue violated the Commerce Clause as it could impact drug companies’ patent settlements completed outside California. It claimed the law would have a devastating impact on drug companies’ businesses models.

“It imposes crippling monetary penalties not just on the companies that settle pharmaceutical patent litigation in violation of its terms, but on all their employees and agents who assist in a settlement effort—from the C-suite to the mailroom clerk who dispatches the signed papers,” the association argued in court papers.

But the three-judge panel found the appellant couldn’t show its members face imminent or “concrete” injury.

“The members state that they ‘likely would expect to be forced to litigate every pending patent-infringement lawsuit to judgment,’ or that they “likely will stay [their] hand on many products and simply stay off the market until the relevant patents all expire. These declarations allege only ‘possiblefuture injury’ and do not establish a substantial risk of harm,” the panel concluded.

Responding by email, the association’s interim CEO and general counsel Jeffrey K. Francer said, “California’s law has made it more difficult for patients to access more affordable generic and biosimilar medicines. We are examining the Ninth Circuit’s ruling and will take necessary action to bring more affordable medicines to patients.”

— By Nick Cahill, CNS

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Latest Additions to SCVNews.com
1876 - California oil industry born as CSO No. 4 in Pico Canyon becomes state's first commercially productive oil well [story]
Pico No. 4
The Los Angeles County Department of Public Health confirmed Friday 34 new deaths and 1,401 new cases of COVID-19, with 6,048 total cases in the Santa Clarita Valley, while Henry Mayo Newhall Hospital reported its 24th COVID-related death to date.
Friday COVID-19 Roundup: 24th Death at Henry Mayo; SCV Surpasses 6,000 Total Cases
Air quality in the Santa Clarita Valley will be unhealthy for sensitive groups/individuals Saturday, Sept. 26, according to the South Coast Air Quality Management District (AQMD) forecast.
Air Quality Advisory Issued for SCV
With temperatures in parts of Los Angeles County expected to rise into the triple digits, various public facilities located throughout the County, including Stevenson Ranch Library, will serve as Emergency Cooling Centers.
Stevenson Ranch Library to Serve as Emergency Cooling Center
The 2020 census is underway and it is your civic duty to participate, but beware of scammers using this opportunity to steal your personal information.
Residents Warned of 2020 Census Scam
The Parks, Recreation and Community Services Commission will hold a virtual study session via Zoom, Thursday, Oct 1, at 4:00 p.m.
Oct. 1: Parks, Recreation & Community Services Commission Study Session
Foster youth in Santa Clarita have a new, dedicated place to study and receive homework help and tutoring. The local Fostering Youth Independence (FYI) organization has created The Study Place in response to the transition to online learning due to the Covid-19 pandemic.
FYI Debuts New ‘Study Place’ for Local Foster Youth to Support Online Learning
As part of State Superintendent of Public Instruction Tony Thurmond’s Education to End Hate initiative, California school districts and charter schools have begun applying for mini-grants now available to support educator training in the areas of anti-racism and bias.
Thurmond Announces Mini Grants Available to Provide Anti-Racism, Anti-Bias Educator Training
A crash involving multiple motorcycles Friday afternoon prompted a SigAlert on the southbound lanes of Interstate 5 in the Stevenson Ranch area, according to first responders.
Multi-Motorycle Crash Prompts SigAlert on SB I-5
With the 2020 SCV Walk to End Alzheimer’s quickly approaching on Saturday, October 3, the planning committee and the California Southland Chapter Alzheimer’s Association would like to update everyone regarding the Walk Day events.
Oct. 3: 2020 Walk to End Alzheimer’s Presents Hybrid Event, Drive-By ‘Promise Flower’ Display
The city of Santa Clarita, in partnership with the National Recreation and Park Association (NRPA), is proud to announce it has received $40,000 from the Walt Disney Company to provide increased access to youth sports, play opportunities and physical activity for kids and families and is launching a new Pop-Up and Play Mobile Recreation Program.
City Receives Funding to Support Youth Sports, Access to Play
The Los Angeles County Health Officer has issued a Heat Alert for the Santa Clarita Valley beginning Sunday, Sept. 27 - Wednesday, Sept. 30.
Heat Alert Issued for SCV Beginning Sunday
Economic development services for arts-oriented small businesses, galleries and more are on the priority list for the 2021 Arts Commission Work Plan, a report Santa Clarita City Council members reviewed Tuesday.
City Council Reviews Priority List for 2021 Arts Commission Work Plan
The USDA Forest Service Pacific Southwest Region announces that current closure orders and fire prohibitions in California have been extended.
Forest Service Extends Closures at Angeles, Los Padres National Forests
SCV Water's Engineering and Operations Committee is scheduled to meet via teleconference on Thursday, Oct. 1, at 5:30 p.m.
Oct. 1: SCV Water’s Engineering & Operations Committee Teleconference Meeting
Valencia High Principal Pete Getz sent an alert out to the school’s families on Wednesday evening, regarding a report of a possible on-campus threat.
Possible On-Campus Threat Shuts Down Valencia High School
A former Cougar News reporter and College of the Canyons student was arrested in Kentucky Wednesday night while covering the Louisville protests that erupted after a grand jury’s decision not to issue a murder indictment against the officers in the Breonna Taylor case.
Former COC Student Reporter Arrested While Covering Louisville Protests
1970 - Lagasse family helps save Mentryville buildings as Newhall and Malibu brush fires erupt & join into worst fire in SoCal history. Twelve fires over 10 days burn 525,000 acres, kill 13 people and destroy approx. 1,500 structures. [story]
Clampitt fire
The Los Angeles County Department of Public Health confirmed Thursday 39 new deaths and 1,165 new cases of COVID-19, with 5,933 total cases in the Santa Clarita Valley.
Thursday COVID-19 Roundup: 790,640 Cases Statewide, 5,933 SCV Cases
The Pac-12 CEO Group announced Thursday that based upon updated Pac-12 COVID-19 Medical Advisory Committee recommendations that take into account material changes to testing capabilities, the prevalence of COVID-19 and cardiac issues, along with updated state and local health official guidance, the Conference will resume its football, basketball and winter sport seasons.
Pac-12 to Resume Football, Basketball, Winter Sports Seasons
One of Zach Schroeder's greatest strengths as The Master's University's men's and women's cross country coach is his ability to map out an athlete's season in advance and then adjust on the fly, fine-tuning workouts so the runner performs best in the season's biggest moments. 
Mustangs Cross Country Adjusting to 2020 Scheduling Changes
When Scott Schauer opened the Santa Clarita Soccer Center nearly 26 years ago, he did it for a love of the sport.
Santa Clarita Soccer Center Says Goodbye
Santa Clarita Valley Sheriff’s Station deputies arrested a Canyon Country man on suspicion of annoying or molesting a child with priors.
Canyon Country Man Arrested on Suspicion of Child Molestation
Air quality will be unhealthy in the Santa Clarita Valley for sensitive groups/individuals Friday, Sept. 25, according to the South Coast Air Quality Management District (AQMD) forecast.
SCV Air Quality Unhealthy for Sensitive Individuals Friday
%d bloggers like this: