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US FEDERAL TRADE COMMISSION..... FTC Finds Drug Patent Settlement Illegally Delayed Generic Competition The FTC has ruled that Schering-Plough Corporation (Schering) entered into illegal patent litigation settlement agreements with generic drug manufacturers Upsher-Smith Laboratories, Inc. (Upsher) and American Home Products (AHP) in 1997 and 1998 to delay the entry of lower-cost generic competition for Schering’s prescription drug K-Dur 20, which is used to treat people with low potassium.----------------------------------------------------------------------------------------------------------------------------------------The FTC found that Schering’s settlement, with its potential generic competitors, included unconditional payments by Schering to Upsher and AHP in exchange for their agreement to delay introduction of their generic products. Theseprovisions were held to be unfair methods of competition: “Absent proof of other offsetting considerations, it is logical to concludethat the quid pro quo for the payment was an agreement by the generic [manufacturers] to defer entry beyond the date that represents an otherwise reasonable litigation compromise.”----------------------------------------------------------------------------------------------------------------------------------------------------------------------- This case represents the first time the FTC has addressed, with the benefit of a full administrative trial and record, the legality of patent litigation settlements between pioneer and generic drug manufacturers. In its opinion, the FTC stated, “We recognize that litigation settlements can conserve public and private resources and create other efficiencies. This does not mean, however, that all settlements are pro-competitive, and we find that there is insufficient evidence to support the defense in this case.”

Be Blessed. Though I speak with the tongues of men and of angels, and have not charity (Love), I am become as a sounding brass, or a tinkling cymbal. Charity suffereth long, and is kind; charity envieth not; charity vauneth not itself, is not puffed up, Doth not behave itself unseemly, seekth not her own, is not easily provoked, thinketh no evil; Rejoiceth not in iniquity, but rejoiceth in truth; Beareth all things, believeth all things, hopeth all things, endureth all things. Charity never faileth. And now abideth faith, hope, charity, these three; but the greatest of these is (Love) charity.

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