The US Court of Appeals holds that if the terms of pay for delay settlements between the brand name and generic pharma companies are within the "scope of the patent" antitrust law is not implicated (Abbott / Geneva / Zenith)

A recent 11th Circuit case, Valley Drug Co. v. Geneva Pharmaceuticals, Inc., sheds light on the complex intersection of patent and antitrust law in the context of a settlement agreement between a name brand pharmaceutical manufacturer and two allegedly infringing generic manufacturers that were seeking FDA approval of a drug patented by the name brand manufacturer [1]. The plaintiffs in this case claimed that the settlement agreements constituted a horizontal contract in restraint of trade in violation of Section 1 of the Sherman Act [2]. The district court agreed, granting the plaintiffs’ motion for partial summary judgment on the basis that the agreements were per se anticompetitive. On appeal, the 11th Circuit reversed. It held that such settlement agreements must be analyzed to

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Authors

  • Hill, Kertscher & Wharton (Atlanta)
  • Eversheds Sutherland (Atlanta)

Quotation

John L. North, William L. Warren, The US Court of Appeals holds that if the terms of pay for delay settlements between the brand name and generic pharma companies are within the "scope of the patent" antitrust law is not implicated (Abbott / Geneva / Zenith), 15 September 2003, e-Competitions Intellectual property, Art. N° 52996

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