Watson Pharmaceuticals, Inc., et al. (FTC v. Actavis)
The FTC filed a federal complaint against Solvay Pharmaceuticals and generic manufacturers Watson Pharmaceuticals and Par Pharmaceuticals, alleging an anticompetitive 'reverse payment' settlement in which Solvay paid the generics to delay market entry of competing testosterone-replacement drugs (AndroGel equivalents) for nine years. The district court and Eleventh Circuit initially dismissed the complaint, but the U.S. Supreme Court reversed in 2013, rejecting the 'scope of the patent' test and allowing antitrust review of reverse payment agreements. The case involved no direct marketing-claim violations but centered on pay-for-delay tactics that suppressed generic competition for a testosterone-replacement therapy. Three related administrative proceedings were also initiated against Watson Pharmaceuticals and affiliated entities.
Required actions (1)
the Supreme Court reversed the 11th Circuit, rejecting the scope of the patent test and permitting antitrust review of reverse payment patent settlement agreements.
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