Ruling Offers a Challenge for Generics

September 17, 2012 – In The News
Many New Jersey drug companies are in a legal holding pattern following a recent Third Circuit Court ruling that calls into question "pay-for-delay" pacts between brand-name drug companies and their would-be generic competitors. "Pay-for-delay" pacts, once deemed business-as-usual practices, involve the brand-name drug company paying the generic drug company to keep their generic product off of the market for a given time period. The Third Circuit Court ruled in July that "pay-for-delay" pacts are prima facie, or presumed, anticompetitive.

Gerard P. Norton, Ph.D., chair of the firm's Intellectual Property department, recently spoke to NJBiz about the ruling.

Norton believes that the ruling will have a wide impact especially since the Third Circuit comprises of much of the industry's historical home base - Pennsylvania, New Jersey and Delaware. "Any of these pay-for-delay cases that are pending, if there are any rulings, the district courts will follow the Third Circuit," Norton told NJBiz.

"If I'm a judge, I'm just going to hold off a decision, because I want to see whether the Supreme Court agrees to hear the case. My gut is ... this will be heard, because you can't have disunity in judicial opinions in the United States."

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