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California Supreme Court reverses summary judgment in Cipro pay-for-delay suit

( May 7, 2015, 17:02 GMT | Official Statement) -- MLex Summary: Reverse-payment settlements to delay entry of generic drugs aren’t immune from scrutiny under state antitrust laws, California’s Supreme Court ruled, reversing a lower court’s decision to dismiss a case over agreements related to the antibiotic Cipro. The court held that the agreements should be analyzed using a ‘rule of reason’ balancing test and that plaintiffs must show the settlement meets several factors: it limits generic entry and includes cash or some other financial consideration that either exceeds the value of the goods or services exchanged or it exceeds the expected remaining litigation costs. “A showing of the above elements is not only necessary but also sufficient to make out a prima facie case that the settlement is anticompetitive,” the court ruled.See document below. ...

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