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The US Supreme Court Issues First Ruling on Antitrust Legality of Reverse-Payment Drug Patent Settlements (Actavis)

e-Competitions Bulletin, No. 53120, July 2013

6 Pages Posted: 16 Jul 2013  

Michael A. Carrier

Rutgers Law School

Date Written: July 15, 2013

Abstract

This short article summarizes FTC v. Actavis, the first case in which the Supreme Court analyzed the antitrust legality of agreements by which brand-name drug companies pay generics to settle patent litigation and delay entering the market.

It concludes that the ruling must be counted as a win for the FTC since the most likely alternative analysis — the "scope of the patent" test applied by the dissent and several appellate courts — would have meant "game over" for challenges to these concerning agreements.

Keywords: Pharmaceuticals, settlements, reverse payments, pay for delay, patent, antitrust, Hatch Waxman, brands, generics

JEL Classification: I18, K21, L40, L41, L43, L65, O34, O38

Suggested Citation

Carrier, Michael A., The US Supreme Court Issues First Ruling on Antitrust Legality of Reverse-Payment Drug Patent Settlements (Actavis) (July 15, 2013). e-Competitions Bulletin, No. 53120, July 2013. Available at SSRN: https://ssrn.com/abstract=2293867

Michael A. Carrier (Contact Author)

Rutgers Law School ( email )

217 North Fifth Street
Camden, NJ 08102-1203
United States
856-225-6380 (Phone)
856-225-6516 (Fax)

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