What FTC Victory Means For Reverse Payment Settlements

By William Lavery, Christine Ryu-Naya and Christopher Wilson (April 21, 2021, 5:58 PM EDT) -- At a time when scrutiny of pharmaceutical companies has reached new highs, a recent decision by one of the country's most conservative courts is likely to have a significant impact on future pharmaceutical patent settlements.

On April 13, in Impax Laboratories Inc. v. Federal Trade Commission, the U.S. Court of Appeals for the Fifth Circuit unanimously upheld the FTC's ruling that the reverse payment settlement agreement between Endo Pharmaceuticals Inc. and Impax Laboratories violated the antitrust laws.[1]

In doing so, the court arguably collapsed the standard for evaluating reverse payment settlements that the U.S. Supreme Court set out in its 2013 landmark decision...

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