In a noteworthy verdict, the U.S. Court of Appeals for the District of Columbia Circuit confirmed the dismissal of an antitrust suit on August 25, 2023. The lawsuit, initially brought by the Federal Trade Commission (FTC), was against Endo Pharmaceuticals’ exclusive patent license for its drug, Opana ER – an extended-release version of oxymorphone – granted to Impax Laboratories. To access the full details of the lawsuit and the verdict, visit JD Supra.
The FTC’s lawsuit, which we reported on back in April 2022, revolved around Endo granting an exclusive patent license to Impax Laboratories just as it launched its generic version of the brand-name drug, Opana ER. Antitrust concerns were initially raised regarding the legality of such a patent license in the pharmaceutical sector.
However, this patent dispute was laid to rest when the DC District Judge Royce C. Lamberth granted the drug makers’ motion to dismiss last year. His decision to dismiss was based on the assertion that this exclusive patent was perfectly permissible under the Patent Act.
The recent affirmation from the Appellate Court reinforces the initial verdict, pivotally noting that exclusive patent licenses remain permissible under the Patent Act. This brings potential relief for many patent holders in the pharma industry, who feared an unfavorable outcome could disrupt their business models.
The case carries significant implications for patent law and antitrust law in the pharma industry. More broadly, it may also influence the landscape of patent licensing not just in pharma, but in other industries where exclusive patents are central to business strategies.