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State Justices To Review 'Pay For Delay' Pharma Settlement

Publication Date: 
February 15, 2012
Source: 
The Recorder
Author: 
Ginny LaRoe

Professor Mark Lemley was quoted by the Recorders' Ginny LaRoe for his involvement in a recent antitrust case against pharmaceutical companies in California.

The California Supreme Court on Wednesday said it would take up a challenge to so-called "pay for delay" pharmaceutical settlements.

A class of consumers asked the high court to review a sweeping Fourth District Court of Appeal ruling that OK'd a $398.1 million payment Bayer AG, patent holder of the antibiotic Cipro, made to Barr Laboratories and other competitors to delay the introduction of cheaper generic versions in In re Cipro Cases I & II.

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The case has drawn the attention of academics. Mark Lemley, director of Stanford Law School's Program in Law, Science, and Technology, and an IP lawyer, represented 78 law, economics, business and public policy professors as amicus curiae in the court of appeal. He welcomed the court's grant of review. "I hope it is an indication that pharmaceutical companies can't violate the antitrust laws with impunity in California," he wrote in an email Wednesday.