| RESDC recently sent local state legislators letters supporting passage of a first-of-its-kind state legislation to prevent “pay-for-delay” pharmaceutical company pricing practices. The California bill seeks to prevent drug manufacturers offering patent settlements to pay generic companies to delay the introduction of lower-price medication to the market. The bill, AB 824, curbs this practice that reduces competition and arbitrarily keeps life-saving medications more expensive. View legislative information about Assembly Bill 824. Here is the full text of the letter that RESDC sent to local state legislators: The Retired Employees of San Diego County (RESDC) is asking you to support AB 824 - Business: preserving access to affordable drugs (Jim Wood).
This bill would prevent “pay for delay” pharmaceutical company pricing practices. It would prevent brand name drug companies to delay the introduction of lower priced medication to the market. The bill, AB 824, authored by Assemblymember Jim Wood and sponsored by Attorney General Xavier Becerra, curbs the practice that reduces competition and arbitrarily keeps life-saving medications more expensive.
These collusive agreements harm consumers. A 2010 study by the Federal Trade Commission concluded that these collusive “pay-for-delay” agreements cost consumers $3.5 billion each year in higher costs for prescription drugs. This means Californians would save hundreds of millions of dollars each year if these practices were prevented.
On behalf of our Board of Directors, I again ask you to support AB 824.
Sincerely,
John J. McTighe
President
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