December 13, 2005
Thirty-five states have banded together to file an anti-trust lawsuit
against two drug manufacturers, Warner Chilcott Corporation and Barr
Pharmaceuticals.
The states' amended complaint, filed in the US District Court for the District of Columbia, accuses both companies of striking a deal that prevents generic versions of Ovcon, a prescription oral contraceptive, from reaching the marketplace.
"People rely on generic drugs to keep their healthcare costs low," said Massachusetts Attorney General Tom Reilly. "We will not allow drug companies to conspire to keep low-cost generic drugs off the shelves."
The original complaint was filed on November 7, 2005 in coordination with the Federal Trade Commission, which also filed suit that day.
The states' suit alleges that Warner Chilcott paid Barr $20 million to forestall marketing a generic version of Ovcon, which has been sold in the United States since 1976. Warner Chilcott became the exclusive U.S. distributor of Ovcon in early 2000.
In early 2003, Barr publicly announced that it planned to have a generic version of Ovcon on the market by the end of that year. The states' lawsuit alleges that Warner Chilcott paid Barr $1 million in September 2003 for an option agreement designed to prevent Barr's generic product from coming to market.
Under the terms of the alleged agreement, once Barr received FDA approval to market generic Ovcon, Warner Chilcott had 90 days to pay Barr $19 million, after which Barr would refuse to bring the cheaper generic version to the market.
According to the lawsuit, Warner Chilcott exercised its option with Barr and remains the only company in the United States that markets Ovcon. As a result of the companies' agreement, the states contend, there are no generic versions of Ovcon on the market.
