Pharma Wins Again on Deducting Patent Dispute Costs for Generics

The pharmaceutical industry has prevailed once again in establishing the right to deduct legal fees paid in defending against patent infringement claims arising from a company’s application to market a new generic drug. Because the most recent victory was secured in the US Court of Appeals for the Third Circuit—the home of many members of the industry—that court’s July 27 decision in Mylan, Inc. & Subsidiaries v. Commissioner (3d Cir.) hopefully will be particularly beneficial in strengthening the industry’s position.

Although the facts at issue in Mylan center upon the rules for governmental review and approval of pharmaceutical products by ...