Evaluating Reverse Payment Settlements After Actavis

Law360, New York (June 19, 2013, 12:10 PM EDT) -- On June 17, in a 5-3 decision, the U.S. Supreme Court ruled in Federal Trade Commission v. Actavis that reverse payment settlements between branded and generic pharmaceutical companies should be subject to a rule-of-reason antitrust standard. As a result, challenges to these patent settlements will now require courts to weigh the pro- and anti-competitive effects of the settlements on a case-by-case basis, rather than by applying the more straightforward and industry-friendly “scope of the patent” test or the “presumptively unlawful” standard advocated by the FTC. The...
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