Reverse Payment Issue Continues to Sizzle

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We reported recently that the issue of reverse settlement payments to generic drug manufacturers was continuing to heat up this summer. FTC Chairman Jon Leibowitz’s recent comments on the issue further support this forecast. In a speech before the Center for American Progress, Leibowitz stated that the FTC "has made stopping these deals a top priority," and he urged Congress to do the same.

Reverse settlement payments occur after a brand-name drug manufacturer sues a generic manufacturer for patent infringement. In settling the case, the companies enter a "pay-for-delay" agreement, whereby the generic accepts a payment to stay out of the marketplace for a certain period of time.

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Sheppard Mullin Richter & Hampton LLP on:

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