3rd Circuit: Reverse-Payment Settlements Are Subject To Rule-Of-Reason Analysis

3rd Circuit: Reverse-Payment Settlements Are Subject To Rule-Of-Reason Analysis

PHILADELPHIA - Settlements involving a reverse payment from a name-brand manufacturer to a generic challenger to delay the entry date for marketing a generic drug are subject to the rule-of-reason test and not the scope-of-the-patent test, the Third Circuit U.S. Court of Appeals ruled July 16, saying that a reverse payment is prima facie evidence of an unreasonable restraint of trade (Louisiana Wholesale Drug Co., Inc., et al., No. 10-2077; CVS Pharmacy Inc., et al., No. 2078; Walgreen Co., et al., No. 10-2079; Merck & Co., Inc., et al., No. 10-4571, 3rd Cir.; 2012 U.S. App. LEXIS 14527).

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