Delayed Generic Competition

Counsel for a generic pharmaceutical company retained Cornerstone Research to assess the company’s incentives to launch a generic drug while ongoing patent litigation remained unresolved.

Counsel for a generic pharmaceutical company retained Cornerstone Research to assess the company’s incentives to launch a generic drug while ongoing patent litigation remained unresolved. The plaintiffs alleged that the generic pharmaceutical company had conspired with its co-defendant, a branded pharmaceutical company, to monopolize the market for the drug by entering into an agreement in which the branded company paid the generic company to delay the launch of the generic product until the patent litigation had ended.

The expert concluded that the agreement did not delay generic entry.

Cornerstone Research worked with an economics expert to compare the potential patent infringement damages faced by the generic company if it launched the generic product prior to the resolution of the patent litigation to the additional profits the generic company would have earned from entering early. The analysis demonstrated that the risks faced by the generic company from launching the generic product prior to the resolution of the patent litigation outweighed the potential benefits. The expert concluded that the agreement did not delay generic entry.