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Mar11
FTC's Pharmaceutical Industry Report

The following is not meant to be legal advice.

 

On January 17, 2007, the Federal Trade Commission (FTC) issued its third annual report detailing settlement activity between brand and generic firms involving patent suits.  Reverse-payment or exclusion-payment settlements, where the brand company provides compensation to the generic company along with restrictions on generic entry, increased.

 

FTC has issued annual reports providing details on the settlements filed during that fiscal year.  The FTC report attributes the increase to appellate court decisions that have upheld settlements containing reverse payments. The Eleventh Circuit reversed the FTC decision in FTC v. Schering-Plough.  In that case, the court held that a reverse payment from Schering-Plough to generic firm Upsher-Smith in return for delayed generic entry violated antitrust laws.

 

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