Supreme Court Holds that Reverse-Payment Settlements Are Not Immune from Antitrust Scrutiny

Supreme Court Holds that Reverse-Payment Settlements Are Not Immune from Antitrust Scrutiny

 WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 17 ruled 5-3 that reverse-payment settlements of patent litigation between the holder of a drug patent and potential generic manufacturers of the drug are not necessarily immunized from an antitrust challenge, even if the anti-competitive effects of the agreement fall within the scope of the exclusionary potential of the patent, and that reverse-payment settlements should be analyzed under the rule of reason (Federal Trade Commission v. Actavis, Inc., et al., No. 12-416, U.S. Sup.; See March 2013) (lexis.com subscribers may access Supreme Court briefs and the opinion for this case).

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