High Court Brings Economics Back To Pay-For-Delay Analysis

Law360, New York (June 17, 2013, 6:07 PM EDT) -- In its much-anticipated decision in Federal Trade Commission v. Actavis Inc. et al., the U.S. Supreme Court ruled 5-3 that the analysis of so-called “reverse payment” settlements of Paragraph IV abbreviated new drug application litigation in the pharmaceutical industry should be carried out under the rule of reason. In doing so, the court resolved a circuit split, rejecting both the “scope of the patent” approach and the FTC’s proposed presumption of illegality, putting the question squarely back in the realm of economics, where it belongs....
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