Big Pharma’s Legal Bill To Take Hit From Pay-For-Delay Ruling

Law360, New York (June 17, 2013, 8:08 PM EDT) -- The U.S. Supreme Court’s ruling Monday requiring stepped-up scrutiny of so-called pay-for-delay deals will force the pharmaceutical industry to spend more money litigating patent suits and devising settlements that won’t be viewed as anti-competitive, experts say.

Under the decision Monday, settlements involving pay-for-delay arrangements, also known as reverse payments, will likely face scrutiny on a number of factors: Whether and how soon the generic drug comes on the market before patent expiration. How much money is involved, relative to future litigation costs. Whether the cash represents compensation for other services, such as marketing of a drug product or supplying of active...

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