Gathering storm for reverse payment settlements

03/31/2009 09:38

Dennis Crouch reviewed Michael Carrier’s book on IP vs. Antitrust law.  It seems that Mr. Carrier takes the view that reverse settlements (where a pharmaceutical company pays a generic to stay off the market) should be illegal.  This practice was discussed at a HIPLA CLE earlier this year (the last Flemings lunch, I believe).  It’s a touchy subject because companies are, in effect, extending their patent rights through negotiation and contracts.  The other side argues that it violates antitrust laws and the general public bears the negatives.  Mr. Carrier’s point is that the pharmaceutical company received its value in accordance with the patent process and now it is time for the public to have the fruits of the innovation.