PRESERVE PAYMENT AGREEMENTS IN THE COMPETITION LAW AND ITS IMPACT ON THE PRODUCTION AND SUPPLY OF GENERIC MEDICINES

Document Type : Research Paper

Authors

1 Assistant Professor, Private and Islamic Law Department, Faculty of Law and Political Science, University of Tehran, Tehran, Iran

2 M.A. in International Business and Economic Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran

Abstract

The research and development sector in the pharmaceutical industry is very costly and complex, and companies are constantly engaging in competition with each other for opening of their new products. In fact, since the generic producers principally have no research and development programs, they are economically able to offer their products to the market with lower prices. Finally, this difference in cost can lead to the withdrawal of originator of the competition. For all these reasons, the originator companies try to delay their entry or make them encountering the dead-end by getting the patents certificate and the related legal support for it. These transactions are considered a satisfactory technique to protect the economic interests of Originator since they can be effective in commercializing medicinal products. Such agreements are currently placed under the anti-competitive practices, and the European Commission considers paying the fund in exchange for keeping generic makers away from the market illegal, contrary to Federal Trade Commission of United States of America which has taken a different stance on this issue.

Keywords

References

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Law Quarterly
Volume 46, Issue 4
January 2017
Pages 627-643

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