Pay-for-Delay

Pay-for-delay is a practice where a larger pharmaceutical company pays generic drug makers to postpone launching cheaper alternatives to a branded medication. This strategy aims to keep drug prices high by delaying competition. Regulatory agencies see it as potentially anti-competitive because it can prevent consumers from benefiting from lower prices and limit choices. Essentially, the brand-name firm pays the generic company to stay off the market longer, which can keep drug costs artificially high for consumers and the healthcare system.