Drug Patents Don't Bar Rival Research Says Supreme Court

It said drug companies should have more leeway under the FDA exemption to investigate new drugs, not just generics, so long as the studies are "reasonably related" to a future drug application. Legal experts said the ruling is a boon for big drug companies, who will save millions in licensing costs when conducting startup research. It also will promote more drug development in the U.S. rather than being outsourced to foreign countries, which historically have had looser patent protections.

Justice Scalia, writing for the court, said a lower court was wrong to bar automatically early stage research conducted to identify new drugs. Such experiments are OK so long as the drug could not be feasibly be marketed until after a rival's patent expired, he said."The use of patented compounds in preclinical studies is protected," Scalia wrote, in sending the case back to lower court to determine the exact scope of drug companies' rights under federal law

Drug Patents Don't Bar Rival Research - Yahoo! News

BioBOOM Op/Ed Score: Pharma/Biotech 1 Research Tool Companies asking royalties 0. In the end it may mean less off shore use to avoid the patents and maybe more work and less fear of doing the work in the US.

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