Lee & Ko Obtains Favorable Result for Dong-A Pharmaceutical in Korea’s First “Reverse Payment Settlement” Case

This was the first “reverse payment settlement”, or "pay-for-delay" case in Korea, whereby the patent holder (brand drug maker) agrees to make payment to a non-patent holder (generic drug maker) in return for delaying the introduction of generic drugs into the market.

The KFTC found that GlaxoSmithKline (“GSK”) and Dong-A Pharmaceutical (“Dong-A”), the largest pharmaceutical company in Korea, colluded by entering into a de-facto reverse payment settlement, and imposed fines in the amount of approximately US$5.2 million.

Lee & Ko successfully appealed KFTC’s decision on behalf of Dong-A before the Seoul High Court, obtaining an 80% reduction in fines and a complete reversal of one of two KFTC charges. The Supreme Court affirmed Seoul High Court’s ruling.