LSIPR Newsletter 12:14 AstraZeneca and Ranbaxy win ‘pay-for-delay’ case MASSACHUSETTS, US
A US court has spared drug companies AstraZeneca and Ranbaxy Laboratories a potentially heſty fine aſter ruling that a ‘pay- for-delay’ deal between them did not violate antitrust law.
Te lawsuit was brought by a group of direct and indirect purchasers of AstraZeneca’s Nexium (esomeprazole) heartburn drug aſter a 2008 settlement it made with Ranbaxy.
Te plaintiffs claimed that the deal saw AstraZeneca pay Ranbaxy nearly $1 billion to delay the launch of the Indian company’s generic version of the drug until 2014.
Tey sued on antitrust grounds by claiming that drug stores and patients alike had been overcharged by billions of dollars since the agreement.
But, in a decision at the US District Court for the District of Massachusetts on December 5, a jury said that although the $1 billion figure was large and unjustified, the payment was not unreasonably anticompetitive.
In a statement, AstraZeneca said it was pleased with the jury’s verdict.
It added: “Te company has always maintained that
were without merit.” Merck insists on buyout despite generic blow NEW JERSEY, US
Pharmaceutical company Merck has said it will press on with an $8.4 billion buyout of Cubist Pharmaceuticals despite a court ruling that could pave the way for a generic version of a lucrative Cubist drug.
In December, New Jersey-based Merck revealed in early December that it was planning to buy Massachusetts-based Cubist.
But its decision could have been cast into doubt following a ruling at the US District Court
for the District of Delaware on
December 8 that invalidated key patents covering Cubist’s antibiotic drug Cubicin (daptomycin).
Te court ruled that pharma company Hospira could launch a generic version of the drug— used to treat skin infections—in 2016, and invalidated four Cubist patents.
Te invalidated patents would have given Cubist the exclusive right to the drug until November 2020. It paves the way for a generic to be launched in June 2016, the expiry date of a Cubist patent that was not declared invalid.
But, in a statement on December 9, Merck said that despite the court ruling it “continues to believe” the acquisition will create strong fundamental value.
“Te combined strength of both companies will provide both incremental and long-term value, and Merck expects the transaction to add more than $1 billion of revenue to its 2015
www.lifesciencesipreview.com
base, with strong growth potential thereaſter,” the company said.
In a statement, Cubist confirmed it would be appealing against the decision.
Michael Bonney, chief executive, said: “We believe we will be successful in the appeal process which we expect before June 15, 2016.
“Our transaction announced with Merck is unaffected, and we will move forward toward its completion in the first quarter of 2015.”
Merck confirmed it plans to complete the acquisition in the first quarter of next year.
Hospira did not respond to a request for comment on its plans to launch a generic version of the drug. n
to conclude well the plaintiffs’ allegations
Ranbaxy said in a statement that it is “pleased with the verdict, and is committed to serving patients, prescribers and the US healthcare system”.
Te so-called pay-for-delay system enables a brand name drug maker to settle with a generic company in exchange for ending patent litigation, and an agreement that allows a generic version to be launched at a later date.
Te ruling was eagerly anticipated aſter a 2013 US Supreme Court decision in a case between the Federal Trade Commission and drug maker Actavis that said regulators may challenge pay-for-delay arrangements.
Just a few months aſter that decision, LSIPR reported that AstraZeneca’s attempt to dismiss the Nexium lawsuit brought against it had been dismissed. n
NEWS 5
PHOTOGRAPHEE.EU /
SHUTTERSTOCK.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20