The Supreme Court Hears Oral Arguments on the Proper Antitrust Standard Governing Reverse-Payment or So-Called “Pay for Delay” Agreements Between Brand and Generic Pharmaceutical Companies
The Supreme Court heard oral arguments yesterday in Federal Trade Commission v. Actavis, Inc., a closely-watched antitrust case in which the Court is expected to clarify if a district court should presume the illegality of reverse-payment (or so-called “pay for delay”) agreements between brand and generic pharmaceutical companies or find such settlements to be immune to antitrust scrutiny as long as the terms of the settlement come within the scope of patent rights held by the brand pharmaceutical company. The case is significant because the FTC has made challenges to such agreements a major policy priority of the Commission for more than a decade. Only eight Justices will decide the appeal as Justice Alito recused himself.