全球智库信息集成服务系统(G2TT): Do \"Reverse Payment\" Settlements of Brand-Generic Patent Disputes in the Pharmaceutical Industry Constitute an Anticompetitive Pay for Delay?

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w20292
来源ID	Working Paper 20292
	Do \"Reverse Payment\" Settlements of Brand-Generic Patent Disputes in the Pharmaceutical Industry Constitute an Anticompetitive Pay for Delay?
	Keith M. Drake; Martha A. Starr; Thomas McGuire
发表日期	2014-07-10
出版年	2014
语种	英语
摘要	Brand and generic drug manufacturers frequently settle patent litigation on terms that include a payment to the generic manufacturer along with a specified date at which the generic would enter the market. The Federal Trade Commission contends that these agreements extend the brand's market exclusivity and amount to anticompetitive divisions of the market. The parties involved defend the settlements as normal business agreements that reduce business risk associated with litigation. The anticompetitive hypothesis implies brand stock prices should rise with announcement of the settlement. We classify 68 brand-generic settlements from 1993 to the present into those with and without an indication of a "reverse payment" from the brand to the generic, and conduct an event study of the announcement of the patent settlements on the stock price of the brand. For settlements with an indication of a reverse payment, brand stock prices rise on average 6% at the announcement. A "control group" of brand-generic settlements without indication of a reverse payment had no significant effect on the brands' stock prices. Our results support the hypothesis that settlements with a reverse payment increase the expected profits of the brand manufacturer and are anticompetitive.
主题	Health, Education, and Welfare ; Health ; Industrial Organization ; Antitrust ; Industry Studies
URL	https://www.nber.org/papers/w20292
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/577965
推荐引用方式 GB/T 7714	Keith M. Drake,Martha A. Starr,Thomas McGuire. Do \"Reverse Payment\" Settlements of Brand-Generic Patent Disputes in the Pharmaceutical Industry Constitute an Anticompetitive Pay for Delay?. 2014.