Summary of Raised Bill No. 251

• Effective October 1, 2020, establishes that settlement agreements between brand-name drug manufacturers and generic drug makers that include payments or benefits in exchange for delayed market entry are presumed to have anticompetitive effects and violate state law.

• Exempts certain settlements from violation status, including covenants not to sue, compensation for documented litigation expenses capped at $7.5 million or 5% of projected revenue (whichever is lower), and agreements allowing entry if the brand manufacturer launches a different dosage or strength.

• Prohibits parties from presuming patents are enforceable or infringed without final court adjudication and requires courts to presume the relevant market includes the brand drug, generic drug, and any biosimilar or AB-rated equivalent products.

• Establishes civil penalties of up to 3 times the value received or $20 million (whichever is greater) for violations, recoverable by the Attorney General in civil action, with a 4-year statute of limitations.

• Does not restrict generic drug companies' rights to pursue separate antitrust claims or counterclaims under federal or state law.