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.  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  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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