Pharmaceutical Pricing and Antitrust Liability Concerns

Summary

Pharmaceutical manufacturers have come under increased antitrust scrutiny in recent years from both government regulators and private litigants. Pharmaceutical antitrust challenges arise from conduct ranging from reverse payment settlements (where a brand manufacturer settles a patent infringement suit in return for a generic manufacturer delaying entry into the market) to undertaking exclusionary conduct to acquire monopoly power. Given the wide range of conduct that can give rise to antitrust liability, both government regulators and private litigants closely monitor competition in the pharmaceutical industry with a focus on conduct that relates to pharmaceutical pricing. This practice note addresses the following concerns in pharmaceutical pricing: (1) Government Guidance on Pharmaceutical Pricing, (2) Pricing in Monopolistic Markets, (3) Pricing in Oligopolistic Markets, and (4) Liability Risks.