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CompilationFan Dongdong
A few days ago, US healthcare and health plan provider Kaiser Permanente has filed a lawsuit against drug maker Merck, claiming that the company’s "paid delay" plan caused it to lose millions of dollars
.
In an article in the San Francisco Business Times, Kaiser claimed that Merck was suspected of delaying the launch of Zetia and Vyotorin generic drugs by paying fees to generic drug manufacturers
.
Both of these native drugs are relatively high-priced, best-selling cholesterol drugs
According to reports, Kaiser filed a lawsuit against Merck in the San Francisco Superior Court in June, and the case was later transferred to the U.
S.
District Court
.
Zetia (ezetimibe) was originally approved by the U.
Kaiser Permanente is a non-profit organization with more than 12 million members in different states in the United States and 9 million members in California
.
Kaiser Permanente claimed that Merck’s postponement of the listing of generic drugs has caused "millions of dollars" in losses to the company and its members
Pay-for-delay (pay-for-delay) is also known as reverse payment, because this delay delays the marketing of certain types of drugs, so that more expensive products of the same type can continue to dominate the market, and the healthcare industry is not welcome This approach
.
Pharmaceutical manufacturers usually adopt this approach in order to have enough time to continue to make high profits before cheaper generic drugs are on the market
According to data from the US Federal Trade Commission (FTC), paid delays in operations have increased the cost of drugs for consumers and taxpayers in the United States by approximately US$3.
5 billion each year
.
Since 2001, the regulator has also been actively filing lawsuits to stop this anti-competitive practice
Merck has not yet commented on the legal dispute with Kaiser
Reference: vKaiser Sues Merck, Generic Drug Firm Over Millions in Losses Due to Alleged "Pay-for-Delay" Scheme