Supreme Court hears arguments in FTC v Actavis

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Supreme Court hears arguments in FTC v Actavis

supct45new.jpg

Supreme Court justices seemed divided on Monday over the legality of pharmaceutical companies paying generic rivals to keep cheaper alternatives to brand name drugs off the market.

supct.jpg

In Federal Trade Commission v Actavis, the justices heard oral arguments concerning the legality of so-called reverse payment agreements.

The case concerns a fee paid to Actavis by Solvay Pharmaceuticals, which owns a patent on testosterone-raising drug AndroGel. In exchange, Actavis agreed not to produce a generic version of AndroGel for an agreed period.

The FTC claimed the agreement amounted to illegal collusion. Actavis argued that such payments are legal provided the generic company’s delay in producing the drug is limited to the period in which the patent is valid.

But the justices seemed more concerned with the economic impact of the deals.

Justice Anthony Kennedy suggested that reverse payments should not exceed what the generic company could make by launching a competing drug, while Justice Elena Kagan said the companies involved were harming consumers by “splitting monopoly profits”.

Justice Antonin Scalia seemed to attribute the situation to a loophole in the Hatch-Waxman laws, and questioned why the court should correct a “mistake” made by Congress.

The case was previously referred to as Federal Trade Commission v. Watson Pharmaceuticals et. Al, before the combination of Actavis and Watson.

more from across site and SHARED ros bottom lb

More from across our site

AIPPI has pulled the plug on its planned 2027 World Congress, and INTA has seemingly committed to hosting a meeting there, but the concerns won’t abate
Despite being outspent by a wealthy opponent, a trial attorney at King & Spalding says ‘relentless pursuit of the truth’ helped his team secure a $420m damages award for mobile gaming client
190 drugs face loss of exclusivity between 2026 and 2030, with the list including Bristol Myers Squibb’s blood-thinning drug Eliquis and immunotherapy medication Opdivo
Nokia, represented by a team from Bird & Bird, adjudged to have made fair offer to Asus and Acer in UK SEP dispute
Azhar Sadique and Kane Ridley, who founded the London office in 2023, are now both working in legal tech and AI-related roles, while another UK-based lawyer has also left
Partner Pierre Pérot rejoins the firm he left in 2022 alongside another returning lawyer, associate Camille Abba
Vaping dispute, in which Stobbs and Brandsmiths are the representatives, tested how the UK's Human Rights Act can apply to injunctions restraining unjustified threats
An AI platform being sold for £40m, and lateral hires involving law firms Womble Bond Dickinson and Cadwell Thomas were among the top talking points
With the London Annual Meeting behind us, we look back at some of the lessons learned this week and ahead to what 2027 will bring
In-house counsel aren’t impressed with law firms’ international networks, but practitioners say they are crucial for business
Gift this article