Consumer advocates say such deals have become more common in the drug industry and add billions of dollars to the drug bills of American patients and taxpayers.
The court ruled unanimously that such "pay-for-delay" deals between brand-name and generic drugmakers can violate the state's anti-trust law.
Such agreements arise when generic companies challenge the patents that allow brand-name companies to exclusively market a drug.
Lawsuits generally follow. If the two sides aren't certain who will win, they often reach a compromise deal that includes a sizable payment from the brand-name company to the generic drugmaker and an agreement by the generic drugmaker to hold off on selling its cheaper drug for some time.
