On January 24, 2014, Judge Walls of the U.S. District Court for the District of New Jersey dismissed the In re Lamictal Direct Purchaser Antitrust Litigation after concluding that the U.S. Supreme Court’s FTC v. Actavis ruling concerning the antitrust implications of so-called “pay-for-delay” settlements of Hatch-Waxman patent infringement cases only “applies to patent settlements that contain an unjustified reverse payment of money.”
The settlement in this case ended a patent infringement action between branded pharmaceutical manufacturer GlaxoSmithKline (“GSK”) and generic manufacturer Teva Pharmaceuticals (“Teva”). The settlement “allowed Teva to market generic lamotrigine [Lamictal®] before the relevant patent expired and ensured that once it did so, its generic tablets and chewables would not face competition from GSK’s own ‘authorized generic’ for a certain period of time.”
Direct Purchaser plaintiffs Louisiana Wholesale Drug Company and King Drug Company of Florence brought the present antitrust action against GSK and Teva, “alleg[ing] that the settlement violates federal antitrust laws.” The district court dismissed the case a first time in December 2012 for failure to state a claim under the then-existing antitrust laws. The Direct Purchasers appealed. While the appeal was pending, the Supreme Court issued its Actavis decision. As a result, the Third Circuit Court of Appeals remanded the case back to the district court for reconsideration of its earlier dismissal based on Actavis.