Situation: Our client, counsel to Bayer, wished to explain to the court why its settlement of patent litigation with a potential generic entrant was driven by legitimate business considerations.
CRA contribution: CRA assembled a team with expertise in the pharmaceuticals industry, antitrust analysis, and game theory. Our economic analysis of the settlement accounted for the business risks facing the parties as well as the potential for a delay in lawful generic entry.
Result: CRA’s expert analysis supported pre-trial motions, and the court granted summary judgment to the defendants.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...