What the Supreme Court's Pay-for-Delay Decision Means for Investors

The Supreme Court has delivered a number of important verdicts, with a few more on the way. One such decision important to the health-care industry is on so-called pay-for-delay tactics.

When a drug's patent protection is in dispute, and generic-drug companies routinely challenge the patents of high-profile drugs, a Big Pharma can essentially settle the case by paying a generic-drug company off to not produce a low-cost version of its product, at least for a little while. 

In this video, health-care analyst David Williamson takes a look at how this decision alters pay-for-delay, how it affects Big Pharma and generic-drug makers, and what it all means for investors.

In the pharma business, great success comes with a caveat. AbbVie is a perfect example, as investors in the new company are left wondering what the future holds once the company's golden goose, Humira, is cooked. The Fool's brand new premium report on the company answers the high-profile questions that AbbVie investors are asking. Simply click here now to claim your copy today.

Follow David on Twitter: @MotleyDavid.

The article What the Supreme Court's Pay-for-Delay Decision Means for Investors originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story