James Burns Comments on Pay-for-Delay Deals in BNA Health Law Reporter

December 30, 2014
James Burns, a Dickinson Wright Member resident in the firm’s Washington, D.C. office, recently provided his insights to Bloomberg BNA’s Health Law Reporter regarding a just-released FTC report analyzing “pay-for-delay” settlements in patent litigation matters. The report, issued on December 22, 2014, indicated that that the number of such settlements between branded and generic drug companies decreased from the 40 reported in FY 2012 (Oct. 2011-Sept. 2012) to 29 in FY 2013 (Oct. 2012-Sept.2013).

Commenting on the reduction in the number of such settlements, Mr. Burns suggested that it likely can be explained by the significant uncertainty about the legality of such agreements prior to the U.S. Supreme Court’s ruling on the issue in the Actavis case, which wasn’t decided until June 2013. “Where possible,” Mr. Burns said, “branded and generic pharmaceutical manufacturers undoubtedly sought to resolve patent disputes during this period with settlements containing terms that were less likely to be swept into the scope of the Supreme Court’s ruling in Actavis,” which may explain the reduction in such settlements in the early part of 2013. Mr. Burns further stated that the data for FY 2014, which is not yet available, will likely be far more illuminating and provide a better sense of the pharmaceutical industry’s response to the Actavis ruling.

To read the complete article, “FTC Reports Declining Use of Pay-for-Delay Deals in Rx Patent Settlements in FY 2013,” please click here. The article is reproduced with permission from BNA’s Health Law Reporter, 23 HLR 1631 (Dec. 25, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com.
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