March 23, 2005
Colorado, Florida and Kansas have settled a lawsuit against Sandoz Pharmaceuticals and Abbott Laboratories of Illinois. The U.S. District Court overseeing the case ordered Sandoz and Abbott to pay a combined $200,000 civil penalty to the State of Colorado. The settlement is subject to final approval by the Court.
The settlement resolves claims that Sandoz and Abbott engaged in anticompetitive conduct that delayed the availability of a generic version of Hytrin. Hytrin is a brand name drug manufactured by Abbott. It is prescribed for hypertension and enlarged prostate.
Sandoz manufactures a generic version of this drug. According to allegations made in the states' lawsuits, Sandoz received payments from Abbott in exchange for its agreement to delay entry of its generic version of Hytrin. The agreement was terminated in 1999 after an investigation was launched.
Earlier this year the court characterized the agreement between Sandoz and Abbott as "so obviously anticompetitive that it violates the Sherman Act under a per se analysis."
"This office has been pursuing anticompetitive practices by pharmaceutical companies over the past several years, and I am pleased to announce that we have been successful in our fight against Sandoz and Abbott," Colorado Attorney General John Suthers said. "We will continue to take actions that are necessary to ensure that pharmaceutical prices remain at legal and competitive levels."
