FTC Sues Cephalon For Anticompetitive Side Deals In Reverse Settlements
The Federal Trade Commission is once again challenging reverse settlements between a brand name company and its would-be generic competitors. This time around, the agency is focusing on side deals tacked onto the settlements, contending they constitute unfair competition
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Focused on $300 million in payments Cephalon made to generic firms to settle Provigil patent suits, case is second to proceed to trial since Supreme Court’s Actavis decision.
Teva’s March 30 authorized generic launch appears to give it a jump over other modafinil ANDA holders, who had settled patent litigation with Cephalon and were expected to enter the market in April. Several companies are expected to share 180-day marketing exclusivity rights for modafinil, although the fate of Ranbaxy’s ANDA under a recently negotiated FDA consent decree remains unclear.
A judge denied Cephalon's motion to compel the Federal Trade Commission to turn over the material; 37 companies had requested a protective order to prohibit release of the documents.