FTC, Teva Agree on Reverse-Payment Ban

The Federal Trade Commission (FTC) says it has reached a global settlement with subsidiaries of Teva Pharmaceuticals to prohibit the company from engaging in reverse-payment patent settlement agreements that impede consumer access to generic drugs. The settlement has to be approved by three federal courts in which FTC has antitrust lawsuits against the company.

An FTC news release says that while Teva is already bound by a prior order in FTC v. Cephalon, the new order is broader, prohibiting the company from entering into two different forms of reverse payments. The order would last 10 years from the date of entry by the courts.

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