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The $885 Million Question: Actavis and the Circularity Problem

The Fatal Flaw in *Actavis* (Exposed by Takeda)

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EconWorks
May 29, 2026
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In 30 Seconds

  • The Supreme Court in FTC v. Actavis held that large payments signal weak patents

  • But to determine whether a payment is “large,” courts must already know patent strength

  • That creates a circular liability test with no accepted methodology

  • In Takeda, the jury resolved this gap by selecting a but-for entry date from competing scenarios

  • The result: …

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