Dr. Reddy's Laboratories successfully resolves antitrust claims alleging "pay-for-delay" pharmaceutical patent settlement

Client(s) Dr. Reddy's Laboratories, Ltd. and Dr. Reddy's Laboratories, Inc.

Jones Day successfully resolved antitrust class action litigation in which plaintiffs alleged that Dr. Reddy's Laboratories, Ltd. and Dr. Reddy's Laboratories, Inc. violated antitrust and related laws through the settlement of Hatch-Waxman patent litigation. Dr. Reddy's manufactures memantine hydrochloride, a drug used in the treatment of Alzheimer's Disease and a generic alternative to the branded product, Namenda. The plaintiff, on behalf of a putative class of "End Payors," sued the brand manufacturer and a number of generics, including Dr. Reddy's. The plaintiff alleged that the brand and generic manufacturers had settled various Hatch-Waxman patent litigations through collusive "pay-for-delay" agreements, in violation of the rule set out by the Supreme Court in Federal Trade Commission v. Actavis. The plaintiff also alleged that the brand used the alleged delay in generic competition to effect a "product switch" -- the withdrawal of one product formulation in favor of a newer version, which is alleged to be an unlawful means of suppressing competition.

Sergeants Benevolent Association Health & Welfare Fund v. Actavis PLC, Case No. 1:15-cv-06549 (S.D.N.Y.)