The Supreme Court recently held that in reverse-payment settlements of drug patent disputes, anticompetitive effects … can be inferred if the reverse payment exceeds the patent holder's anticipated litigation costs, absent some offsetting … quantifies anticompetitive effects. An otherwise unexplained bump in the patent holder's stock price shows that the settlement …

We analyze, theoretically and empirically, how salience affects the market reaction to innovation announcements … investor attention of patent grant and FDA drug approval announcements. We show that, in addition to an announcement effect …, there will be a stock return drift following innovation announcements, with the former magnitude increasing and the latter …