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Reverse Payments Do Not Violate Antitrust Laws
In In re Ciproflaxin Hydrochloride Antitrust Litigation, 2008-1097 (Fed. Cir. Oct. 15, 2008), the Federal Circuit affirmed the U.S. District Court for the Eastern District of New York's grant of summary judgment that agreements settling a patent infringement lawsuit that provide for reverse payments from the patent holder to a generic drug manufacturer did not violate the antitrust laws when the generic drug manufacturer relinquished the 180-day marketing exclusivity granted to the first Paragraph IV abbreviated new drug application (“ANDA”) filer.
In October 1991, Barr Labs, Inc. (“Barr”) filed an ANDA for a generic version of Bayer AG and Bayer Corp.'s (collectively “Bayer”) patented ciprofloxacin hydrochloride (“Cipro”). The ANDA included a Paragraph IV certification indicating that Barr sought to market its generic drug before expiration of Bayer's U.S. Patent 4,670,444 (“the '444 patent”).
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