The Supreme Court Heightens Antitrust Scrutiny For ANDA Reverse Payment Agreements Between Pharmaceutical Companies
- Dennies Varughese & H. Keeto Sabharwal
- Sterne, Kessler, Goldstein & Fox
The U.S. Supreme Court yesterday ruled on the long-awaited FTC v. Actavis case concerning ANDA reverse payments, resolving a sharp circuit split. The Court held that settlement agreements that include reverse payments to end litigation between brand pharmaceutical companies and generic challengers must be evaluated under a “rule of reason” analysis to determine whether they violate federal antitrust laws. The decision could open the door for more government and private antitrust suits against pharmaceutical companies, both brand and generic, when they enter into reverse payment agreements.
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