When a brand-name drug’s patent is about to expire, the company behind it sometimes pays a generic manufacturer to delay launching a cheaper version. This is called pay-for-delay, a practice where brand drug makers pay generic competitors to postpone market entry. Also known as reverse payment settlements, it’s not a legal loophole—it’s a business tactic that keeps prices high and patients paying more. The Federal Trade Commission has called it anti-competitive, and courts have ruled it can violate antitrust laws. But these deals still happen—often quietly, behind closed doors.
This isn’t just about corporate profits. Every time a generic drug, a cheaper version of a brand-name medication approved by the FDA as bioequivalent is blocked from entering the market, patients pay hundreds or even thousands more per year. For drugs like Lipitor or Nexium, which once cost over $300 a month, generics could drop the price to under $10. But if the brand pays the generic maker $100 million to wait six months, that delay means millions of people stay on the expensive version longer. The same thing happens with pharmaceutical patents, legal protections that give drug makers exclusive rights to sell a medicine. Companies file dozens of secondary patents—not because the drug changed, but to reset the clock and extend their monopoly.
These tactics directly connect to the posts you’ll find below. You’ll see how pay-for-delay affects generic drug approvals, why the FDA’s GDUFA rules were created to speed up reviews, and how bioequivalence testing ensures generics work the same. You’ll also learn how patients fight back—by asking pharmacies about drug switches, demanding transparency, and using tools like medication action plans to track what they’re really paying for. This isn’t theoretical. It’s happening right now, in your local pharmacy, in your insurance statement, and in your wallet. The posts here give you the facts to understand what’s going on—and what you can do about it.
Antitrust laws in the generic drug market aim to balance innovation with affordability. Pay-for-delay deals, patent abuse, and product hopping delay cheaper generics, costing consumers billions. Learn how these tactics work - and what’s being done to stop them.
