Underwriters were supportive of the U.S. Supreme Court's recent decision that generic drug manufacturers are not liable for defectively designed drugs, and the ruling is not expected to impact price and availability of liability coverage, say insurance brokers.
According to a June 24 decision in Mutual Pharmaceutical Co. Inc. v Bartlett, generic drug manufactures are not liable for an individual's claim that a defective design in the drug harmed them. The court reasoned that because federal regulation bars the manufacturer from deviating from the brand-name product, they are not liable for adverse results.
The ruling follows the 2011 decision in Pliva v. Mensing that says generics are not responsible for failure to warn about a drug's dangers because they must use the same safety label as the brand-name version.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
