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Senate approves bill to presume certain brand–generic settlement payments are anti-competitive
Summary
A bill passed that would shift the legal presumption in cases where brand-name drug companies pay generics to delay market entry, making such settlements presumptively anti-competitive unless proven otherwise, sponsors said.
The Senate passed legislation sponsored by Senator Fernandez that changes the legal presumption in cases where a brand-name drug manufacturer pays a generic company to delay market entry. Sponsor Fernandez said the change flips the traditional presumption and requires parties to prove that any payment and delay is not anti-competitive, arguing such deals cost consumers billions and delay cheaper generics.
Fernandez said the bill is targeted to protect competition while allowing fair settlements and that evidence supports the view that pay-for-delay deals raise prices and block timely generic entry. The sponsor urged colleagues to support the measure to improve New Yorkers’ access to affordable medication.
Vote and effect: The bill was passed by the Senate (roll-call tallies announced on the calendar) and will proceed toward final enactment steps. The floor transcript records both proponents’ explanations and recorded roll-call results.
Why it matters: Changing the presumption in settlement disputes could influence litigation strategy and enforcement around pharmaceutical competition and affect drug prices and availability for New York consumers. The bill does not ban all settlements; it places the burden on payers to show a settlement’s public benefit.
Ending: The Senate approved the measure; further legal interpretation and enforcement will be driven by statutory text and court actions if litigation arises.
