The synthetic antibiotic Cipro.

The Federal Circuit yesterday affirmed summary judgment against antitrust claim-bringers who alleged that a patent holder (Bayer) illegally agreed to allocate the market for a drug (ciprofloxacin hydrochloride) when it settled litigation in which it accused potential generic manufacturers (including Barr) of infringing the patent.  The settlement terms included a covenant by the generics not to challenge the validity of the patent and a promise by the patent holder to pay the generic people north of $49 million.  The court held that the arrangement didn't violate antitrust law because its anticompetitive effects fell within the "exclusionary power" of the patent.  In re Ciprofloxacin Hydrochloride Antitrust Litig., No. 08-1097 (Fed. Cir. Oct. 15, 2008).