FTC can challenge "pay-for-delay" arrangements, top court says

06/17/2013 | Reuters · France 24 · CNBC · USA Today

The Supreme Court ruled on Monday that the Federal Trade Commission can legally challenge "pay-for-delay" deals between brand-name drugmakers and makers of generics on a case-by-case basis. "Courts reviewing such agreements should proceed by applying the 'rule of reason,' rather than under a 'quick look' approach," the top court said. The ruling "will open the door to broader FTC scrutiny of brand/generic settlements," but most of these deals will likely still be allowed "even if reviewed by the FTC," an analyst said.

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