FTC v. Actavis Decision Offers Guidance to Drug Manufacturers

more+
less-

June 18, 2013 – The Supreme Court handed down a 5-3 decision yesterday in FTC v. Actavis, Inc., holding pay-for-delay agreements are subject to antitrust review, but are not presumptively unlawful. The decision was authored by Justice Breyer, who was joined by Justices Kennedy, Ginsburg, Sotomayor and Kagan. Chief Justice Roberts provided a dissent, which was joined by Justices Scalia and Thomas. Justice Alito had previously recused himself from the case.

The Court overturned an Eleventh Circuit dismissal of a Federal Trade Commission complaint against Actavis, Inc., as well as additional drug companies, Solvay Pharmaceuticals, Paddock Laboratories and Par Pharmaceutical, for failing to set forth an antitrust law violation. The Court stated that pay-for-delay agreements may have significant adverse effects on competition and, therefore, found that the FTC complaint did plead an antitrust law violation. The Court went further to advise that the pay-for-delay agreement should be subject to a traditional antitrust analysis under the “rule of reason.” The Court’s decision resolves a circuit split as to whether pay-for-delay agreements should be analyzed under the antitrust sliding “rule of reason” standard or under a “quick look” approach.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

FTC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Banner & Witcoff, Ltd. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×