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Case Briefing

By ALM Staff | Law Journal Newsletters |
October 16, 2003

Finding of Per Se Anti-Trust Violation Overturned

If a drug maker might arguably have been entitled to market exclusivity because of the patents it holds, its payment to generic rivals to induce them to stay out of the market is not necessarily a violation of federal anti-trust laws. Valley Drug Co. v. Geneva Pharmaceuticals Inc., No. 02-12091 (11th Cir, 9/15/03).

The patent holder, Abbott Laboratories, contracted with Geneva Pharmaceuticals Inc. and Zenith Goldline Pharmaceuticals – drug manufacturers that filed abbreviated new drug applications to market generic versions of Abbott's drug Hytrin(R) – to keep the generics off the market. Other potential generic makers of Hytrin that were not parties to the contract brought suit claiming anti-trust violations. A Florida trial court found that an agreement such as this was a per se illegal restraint of trade.

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