SCOTUS hears oral arguments in pay-for-delay

Comments from the U.S. Supreme Court Justices at Monday's Actavis Inc., et al. suggest pay-for-delay settlements between branded and generic drug manufacturers could face heightened judicial scrutiny, but perhaps not to the extent the FTC is seeking for such deals.

The case concerns a decision from the U.S. Court of Appeals for the Eleventh Circuit that a pay-for-delay deal was not in violation of antitrust law. The deal was between the pharmaceuticals business of Solvay S.A. (Euronext:SOLB) and generic drug manufacturers, including Actavis Inc. (NYSE:ACT) (formerly Watson Pharmaceuticals Inc.). Solvay had paid the generic manufacturers to abandon patent challenges and refrain from marketing a generic version of testosterone replacement therapy AndroGel. ...