Abstract
On Monday, March 25, the Supreme Court will hear arguments concerning the legality under antitrust laws of "pay for delay" or "reverse payment" settlements, in which a brand-name drug manufacturer pays a patent challenger to keep the generic competitor out of the market until an agreed-upon date. A Health Affairs Blog post written last year, when the Supreme Court decided to take the case, FTC v. Watson Pharmaceuticals, provides a great overview of the issues that will be before the Justices on Monday. In the post, Bill Sage of the University of Texas and John Golden of Harvard, examine the legal issues surrounding these controversial settlements. They also point out that, in deciding the case, "the Court will influence a much larger debate over innovation in health care markets.
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