The US Federal Trade Commission (FTC) is set to review the proposed €4.3 billion merger between Watson Pharmaceuticals and Actavis - a deal that would create the world’s third-largest generic drug maker.

An appeals court has again shot down a US Federal Trade Commission (FTC) lawsuit attempting to brand pay-for-delay pharmaceutical settlement deals anti-competitive – casting more doubt on the chances of its long-running bid to end the deals succeeding in the courtroom.

Several pharmaceutical companies have told a US appeals court that the Federal Trade Commission’s (FTC) attempt to overturn a failed pay-for-delay prosecution should be thrown out.

The US Federal Trade Commission has fought back against charges that it acted improperly in investigating an alleged pay-for-delay pharmaceutical deal by disclosing confidential business secrets and attempting to broker a behind-the-scenes deal between two drug makers.