Patent Law

Antitrust Attack on Reverse Payment Settlements in Pharma Patent Cases

By Les Weinstein, Michael Young, John Leo Wagner, Eric van Ginkel, and Victoria Pynchon

This just in from Weil Gotshal's Summer 2009 Antitrust Update:  DOJ Allies with FTC in Antitrust Attack on Reverse Payment Settlements; While FTC Also Seeks Legislative Solution by WG attorneys Ausra O Pumputis and Alan R. Kusinitz.

The term 'reverse payment' in the context of pharmaceutical settlements encompasses agreements reached between patent holders and an alleged infringing manufacturer of a generic version of the patent holder's branded drug in which monetary or other consideration flows from the patentholder to the alleged infringer. 

On July 6, 2009, the Department of Justice ('DOJ') ended an apparent policy split with the Federal Trade Commission ('FTC') regarding the legality of such settlements by filing an amicus brief in the United States Court of Appeals for the Second Circuit1 that supports the FTC's view that such  settlements are presumptively unlawful.2

The brief advances President Obama's goal of banning reverse payments3 and Assistant Attorney General Varney's confirmation hearing promise earlier this year that she would 'align the Federal Trade Commission and the DOJ on the issue.'4

Continue reading this important article here.  And thanks to @WeilGotshal on twitter for calling it to our attention!

Full post as published by IP ADR Blog on August 10, 2009 (boomark / email).