Outside Publication

King Drug Decision May Be A Turning Point in Pay-for-Delay, Law360

August 07, 2015

Recently, the Third Circuit issued the first federal appellate decision interpreting the U.S. Supreme Court's landmark decision in Federal Trade Commission v. Actavis Inc., potentially greatly expanding the scope of liability for settling parties in reverse payment cases. 

The Third Circuit held in King Drug Co. of Florence Inc. v. Smithkline Beecham Corp. that a pioneer drug manufacturer's agreement not to market an authorized generic product during a generic challenger's 180-day exclusivity period to settle litigation under the Hatch-Waxman Act is subject to rule of reason scrutiny under the Sherman Act.