California Supreme Court allows “pay-to-delay” suit to proceed

Consumer Law and Policy Blog reports that the California Supreme Court has revived antitrust suits against Bayer and Barr Laboratories. The cases stem from an agreement between brand-name manufacturer Bayer and generic manufacturer Barr, under which Bayer agreed to pay Barr $398.1 million in exchange for Barr postponing the sale of the generic version of Bayer’s antibiotic Cipro. Such agreements, called “pay-to-delay” agreements, have been frequently challenged under the antitrust laws.