As complex as reverse-payment antitrust lawsuits can be, the one being litigated against generic drug maker Ranbaxy over its settlement with Cephalon can be broken down to the difference between fine and coarse salt, said one of the attorneys bringing the case.
Foley & Lardner attorney James Matthews, who is representing fellow generic drug maker Apotex, told the jury set to preside over Apotex v. Cephalon that the name-brand drugmaker Cephalon essentially bought coarse kosher salt and then told the US patent office that it invented the finer version of the same substance.
“They didn’t even grind it. They just bought it. They went to the store and bought Morton fine salt and they told the patent office they made it,” Matthews said. He went on to explain that Ranbaxy later discovered the misconduct and then used it to obtain an anti-competitive settlement agreement with Cephalon for more than $26 million that delayed other generic companies from entering the market for six years. “Did they do it because they were afraid of the patent, and they thought they were going to lose the case? Or did they do it because they wanted the $26 million?”
What Matthews was likening to salt was modafinil, the active ingredient in Provigil, which Cephalon bought from a French company. What Cephalon eventually patented was “small particle modafinil.”
Full Content: Delaware Law Weekly
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Apple Prevails in Dismissal of Crypto-Payment Antitrust Lawsuit
Mar 27, 2024 by
CPI
Amazon Fined in Poland for Misleading Customers
Mar 27, 2024 by
CPI
Credit Card Rewards Under Threat as Visa, Mastercard Settlement Impacts Swipe Fees
Mar 27, 2024 by
CPI
UK Fashion Giants Commit to Honest Environmental Claims
Mar 27, 2024 by
CPI
Former Traders Lose Appeal Against Libor Rigging Conviction
Mar 27, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI