FTC Injects Its Crusade Against “Reverse Payment” Drug Patent Suit Settlements into Merger Consent Order

Cross-posted by Forbes.com at On the Docket and WLF’s contributor page

We almost have to admire the Federal Trade Commission’s (FTC) persistence. For more than a decade, the Commission has been toiling unsuccessfully in federal court, and in Congress, to prohibit so-called pay-for-delay or reverse payment drug patent settlements. It’s even hinted at using its limited rulemaking authority to do what the courts and Congress won’t do. Last week, the Commission utilized another, very troubling route to pursue its crusade: it injected its views on these patent litigation arrangements into a proposed settlement of a complaint it had filed to block a merger between two drug companies, Perrigo Company and Paddock Laboratories.

We’ve provided ongoing commentary here at The Legal Pulse  over the past year on the legal and policy developments related to FTC’s actions on reverse payment drug patent settlements (click on the “FTC” tag from our tag cloud to read them).

The Commission concluded that Perrigo’s purchase of Paddock’s assets would result in harmful market concentration in the markets for a number of generic drugs.  Through the settlement, the companies agreed to a number of conditions which FTC believes will ensure future competition.  The Decision and Order also contains, in part, the following provision: Continue reading “FTC Injects Its Crusade Against “Reverse Payment” Drug Patent Suit Settlements into Merger Consent Order”