FTC v. Watson Pharmaceuticals, Inc.

The Supreme Court on December 7, 2012 granted certiorari in the case of FTC v. Watson Pharmaceuticals, Inc..  The Supreme Court will address the question of whether a reverse-payment agreement between a pharmaceutical company patent holder and a generic pharmaceutical manufacturer is open to anti-trust attack or protected therefrom by virtue of the exclusionary protections of the patent.  A reverse-payment agreement generally provides that a generic pharmaceutical manufacturer will delay producing a generic version of a patented drug in consideration for payments made to the generic manufacturer by the patent holder.  This arrangement allows the patent holder to extend its period of exclusivity and, presumably, maintain its pricing power on the patented drug.  Supreme Court Order Granting Certiorari in the Case of FTC v. Watson Pharmaceuticals, Inc..  FTC v. Watson Pharmaceuticals, Inc. Eleventh Circuit Court of Appeals Opinion