Antitrust Magazine: Scaling the Rebate Wall

O’Melveny partner Peter C. Herrick and counsel Monsura A. Sirajee co-authored an article for the Spring 2024 edition of the American Bar Association’s Antitrust Magazine.

The authors examine the current controversy over rebates in the prescription drug industry. Intended as a solution to rising drug costs, rebates may actually result in higher prices to consumers, according to Congress, regulators, and private plaintiffs. “For pharmaceutical companies, PBMs, practitioners, and other stakeholders, this growing attention on rebating practices raises questions about how to navigate a potential litigation and regulatory minefield while balancing commercial goals and antitrust risk,” they write. Their article explores the theory behind “rebate wall” claims, economists’ assessment of the economic impact of rebates on the industry and consumers, and how courts have weighed in.

Read the full article here.