FTC's Health Care Reform Plan: Save $12 Billion With Reverse Settlement Ban
Executive Summary
The Federal Trade Commission has drawn another arrow in its attempt to shoot down reverse settlements between brand and generic drug companies - offering an estimate of $12 billion in government savings over the next 10 years from ending the practice
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Coverage, Courts And Congress: News In Brief
Congress again seeks to restrict reverse settlements: Sen. Herb Kohl, D-Wis., proposed an amendment to a tax bill that would amend the Federal Trade Commission Act so that agreements between brand and generic companies to settle patent infringement claims are presumed to have anticompetitive effects if the ANDA filer receives anything of value and agrees to limit or forgo research, development or sales of its product. The presumption shall not apply if the parties "demonstrate by clear and convincing evidence that the precompetitive benefits of the agreement outweigh the anticompetitive effects of the agreement." Kohl introduced the amendment, SA 4332, on June 9 for inclusion in the American Jobs and Closing Tax Loopholes Act, H.R. 4213. Legislators had previously pushed for a similar amendment to render such deals illegal in the health care reform bill (1"The Pink Sheet," March 22, 2010)
Coverage, Courts And Congress: News In Brief
Congress again seeks to restrict reverse settlements: Sen. Herb Kohl, D-Wis., proposed an amendment to a tax bill that would amend the Federal Trade Commission Act so that agreements between brand and generic companies to settle patent infringement claims are presumed to have anticompetitive effects if the ANDA filer receives anything of value and agrees to limit or forgo research, development or sales of its product. The presumption shall not apply if the parties "demonstrate by clear and convincing evidence that the precompetitive benefits of the agreement outweigh the anticompetitive effects of the agreement." Kohl introduced the amendment, SA 4332, on June 9 for inclusion in the American Jobs and Closing Tax Loopholes Act, H.R. 4213. Legislators had previously pushed for a similar amendment to render such deals illegal in the health care reform bill (1"The Pink Sheet," March 22, 2010)
No "Cert"-ainty On Reverse Settlements: Supreme Court Declines To Take Up Case
Lower courts had found Bayer’s agreement with Barr and Hoechst to delay generic Cipro to be lawful; Second Circuit is to rule on the deal.