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The U.S. Supreme Court has ruled in a 5-3 decision that some “pay-for-delay” settlements between brand-name and generic drug companies may violate antitrust laws, opening the deals to anti-competitive challenges by federal regulators.
The decision in Federal Trade Commission v. Actavis responds to the FTC’s ongoing criticism of reverse-payment patent litigation settlements in which brand-name drug companies agree to pay generic manufacturers to delay less-expensive versions of a drug from coming to market after the original patents expire.
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