The US State of California becomes the first State to enact legislation rendering certain pharmaceutical patent litigation settlement agreements presumptively anticompetitive

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On October 7, 2019, California became the first state to enact legislation— Assembly Bill 824 (“AB 824”)—rendering certain pharmaceutical patent litigation settlement agreements presumptively anticompetitive. [1] This alert provides a brief summary of some of the key provisions as written; the final implications of this statute await judicial review. Reverse Payment Settlements Including “Anything of Value” Presumed Illegal The settlement agreements subject to the new law, sometimes referred to pejoratively as “reverse payment” or “pay for delay” agreements, typically resolve Hatch-Waxman patent litigation [2] in which a generic pharmaceutical manufacturer has challenged a patent covering a brand pharmaceutical manufacturer’s drug product, and in which a plaintiff or government enforcer

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  • White & Case (Washington)
  • White & Case (Washington)
  • White & Case (New York)
  • White & Case (New York)
  • White & Case (New York)
  • White & Case (New York)

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Mark J. Gidley, Noah A. Brumfield, Jack E. Pace, Kristen O'Shaughnessy, Dan Grossbaum, Bryan D. Gant, The US State of California becomes the first State to enact legislation rendering certain pharmaceutical patent litigation settlement agreements presumptively anticompetitive, 7 October 2019, e-Competitions Intellectual property, Art. N° 96882

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