On the other hand, Wood said pharmaceutical companies are hurting consumers twice with their confidential pay-for-delay agreements. First, a generic drug company harms consumers when it delays selling its product, which is always cheaper than a brand name product. Second, a brand name drug company hurt consumers when it stifles additional competition and multiple generic companies begin to produce less expensive equivalent drugs.
California is the first state in the nation to address pay-for-delay agreements.
Governor Gavin Newsom is committed to lowering the prices of prescription drugs, a part of his California for All agenda.
Early in January, he signed an executive order to create a single-payer system for prescription drugs. He vowed to use the state’s market power and moral power to demand fairer prices for prescription drugs.
