A Post-Actavis Approach To Reverse Payment Settlements

Law360, New York (July 31, 2013, 3:00 PM EDT) -- In Federal Trade Commission v. Actavis Inc., the U.S. Supreme Court held that “reverse payment” pharma patent settlements are not categorically immune from the antitrust laws even when within the scope of the patent.[1] Instead, the court decided that such settlements between innovator and generic drug companies may (or may not) violate the Sherman Act.

The majority opinion in Actavis explained that Hatch-Waxman infringement settlements that involve a flow of consideration from the patent holder/innovator to the alleged infringer/generic are neither presumptively lawful nor presumptively unlawful....
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