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State court to examine ‘pay-for-delay’ deals by drugmakers
California Watch

California is the first state to examine whether pharmaceutical companies can pay competitors to not make or sell cheaper generic versions of their prescription drugs.

The California Supreme Court last month agreed to review a 10-year-old class-action lawsuit involving the antibiotic Cipro (ciprofloxacin), which originally was manufactured by drugmaker Bayer. The suit argues that it was illegal for Bayer to pay a competitor to stay out of the market as part of a settlement in a legal dispute over the Cipro patent.

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