A Kansas district court judge has dismissed motions by Mylan, Pfizer, and others to dismiss class action complaints accusing them of RICO Act violations, specifically, their activities aimed at monopolizing the market for emergency allergy med EpiPen (epinephrine).
The lawsuit alleges Pfizer and Mylan engaged in “an illegal scheme to monopolize the market” for epinephrine auto-injectors. The scheme allegedly involved raising the price of EpiPen and then using the higher margins to offer larger rebates and discounts to pharmacy benefit managers (PBMs) in exchange for better or exclusive formulary positions.
Plaintiffs also claimed the companies abused patent law and regulatory processes to delay competitor products from coming to market. For example, they argue the defendants entered an “unlawful settlement agreement” in 2012 by which Teva postponed the launch of its EpiPen generic until mid-2015. Yet six months before that launch time, Mylan filed a Food and Drug Administration Citizen Petition, calling into question whether the copycat product was equivalent to EpiPen and thereby further stalling its market entry.
The suit in the US District Court for the District of Kansas will continue despite Mylan and Pfizer’s protests. While Judge Daniel Crabtree dismissed several of the plaintiffs’ claims, he found there was adequate support behind the rest.
Full Content: Biopharma Dive
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI