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
Date Written: July 15, 2013
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
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