The US Supreme Court issues first ruling on antitrust legality of reverse-payment drug patent settlements (Actavis)

On June 17, 2013, in FTC v. Actavis, the U.S. Supreme Court for the first time examined the antitrust legality of agreements by which brand-name drug companies pay generics to delay entering the market. Justice Stephen Breyer wrote the majority opinion for five Justices, concluding that these settlements could violate the antitrust laws and should be analyzed under the Rule of Reason. Chief Justice John Roberts wrote a dissent for three Justices, highlighting the importance of patents and settlements. Justice Alito was recused from the case. Facts In 1999, Solvay filed a New Drug Application with the U.S. Food and Drug Administration (FDA) for a testosterone gel called AndroGel. One year later, the FDA approved the drug, and four years later, Solvay obtained a patent on the drug (in