FTC Expands Reporting Requirements For Transfers Of Pharmaceutical Patent Rights

The U.S. Federal Trade Commission ("FTC") issued final changes to the premerger notification rules that affect whether pharmaceutical companies must report certain proposed acquisitions of exclusive patent rights to the FTC and the Antitrust Division of the Department of Justice ("DOJ") for antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act").  The final rules apply solely to the pharmaceutical industry and will become effective 30 days after their publication in the Federal Register.  The amendments do not change the current HSR reporting requirements related to exclusive licenses in other industries.

Key Takeaways

• A patent holder's retention of limited manufacturing rights no longer renders a transaction non-reportable.