FTC Issues Report On ‘Pay-For-Delay’ Settlement Volume For FY 2013

The Federal Trade Commission staff recently issued a report detailing the number of "potential pay-for-delay settlements" that took place in fiscal year 2013. The FTC is a staunch opponent of so-called "pay-for-delay"—also known as "reverse payment"—settlements.

According to the Commission report, "pharmaceutical companies filed 145 agreements constituting final resolutions of patent disputes between brand and generic pharmaceutical manufacturers" during the period studied. Of those, 29 settlements "potentially involve pay for delay because they contain both compensation from a brand manufacturer to a generic manufacturer and a restriction on the generic manufacturer's ability to market its product in competition with the branded product."