Procaps S.A. v. Patheon, Inc.

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Procaps and Patheon are involved in the market for softgel services. Procaps filed suit under the Sherman Act, 15 U.S.C. 1, against its former joint venture partner, Patheon, alleging that Patheon's acquisition of Banner violated Section 1 of the Act. Procaps specifically alleged that the Banner acquisition placed Patheon in direct competition with Procaps, thus transforming the parties’ legitimate joint venture into a per se illegal horizontal restraint in violation of Section 1. The district court granted summary judgment to Patheon. After thorough review and having the benefit of oral argument, the court concluded that Patheon was entitled to summary judgment both because Procaps has failed to establish the foundational requirement of concerted action necessary to maintain a Section 1 claim under the Sherman Act, and because Procaps also failed to show any actual anticompetitive effects. Accordingly, the court affirmed the judgment. View "Procaps S.A. v. Patheon, Inc." on Justia Law