On April 16, 2007, Warner Chilcott announced a tentative settlement in the antitrust litigation brought against it by, among others, 34 states and the District of Columbia relating to Warner Chilcott’s oral contraceptive Ovcon. The settlement requires Warner Chilcott to make cash payments and product donations totaling approximately $7.5 million. The settlement resolves the claims of the states and indirect purchasers, but not those of direct purchasers.

As reported in our Issue 1, the Ovcon case arose out of Warner Chilcott’s purchase of an exclusive license from Barr Pharmaceuticals of Barr’s generic Ovcon product, which the Federal Trade Commission (FTC) and other plaintiffs have characterized as a naked agreement not to compete.

As we reported in Issue 4, the FTC settled its case against Warner Chilcott in October of last year but continues to litigate against Barr.