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HEALTHCARE COSTS✓ Common Ground

Reform patent laws to increase competition by banning “pay to delay” deals

76%National
79%Republican
77%Democrat
2%Gap
When a company develops a new drug, they can get a patent so that they are the only company that can sell the drug for up to 20 years. After the patent expires, other companies can sell cheaper generic versions. Some brand-name drug companies have been paying generic manufacturers to delay entering the market, extending their monopoly. A proposal would ban these 'pay-for-delay' agreements.

Arguments For & Against

Pro Argument

Drug companies are gaming the patent system to maintain monopolies long after their patents should have expired, keeping drug prices artificially high. Banning pay-for-delay agreements will allow cheaper generic drugs to come to market sooner, saving consumers and the government billions of dollars.

Con Argument

These settlements between brand-name and generic manufacturers often result in generic drugs coming to market sooner than they would if full patent litigation had to play out. Banning all such payments could perversely delay generic drug entry in some cases.

Source document: SwingSix-Healthcare-Quaire-0724.pdf

TypeOrganizationDateNatRepDemGapMetric
New PPC Survey (2026)Program for Public ConsultationFebruary 202676%79%77%2%favor
Deliberative SurveyProgram for Public ConsultationJuly 202471%70%75%5%favor

Program for Public ConsultationFebruary 2026

Make it illegal for drug companies–whose patent on a drug has come to an end–to pay generic drug companies to hold off making and selling that drug

Program for Public ConsultationJuly 2024

When a drug company’s patent is about to expire, make it illegal for that drug company to pay generic drug companies to hold off on making and selling that drug.