Navigation Links
Consumers Ask California Appellate Court to Reconsider Cipro Anticompetitive Reverse Payment Agreements
Date:5/18/2010

SAN DIEGO, May 18 /PRNewswire/ -- Attorneys representing plaintiffs who overpaid for the antibiotic Cipro are asking a California appellate court to reverse a lower court ruling that set aside antitrust claims against Bayer Corporation.  The case involves the agreement Bayer made with generic competitors to prevent competition and to maintain Cipro prices at high levels. The plaintiffs are a certified class of California consumers, union health and welfare funds, and others.

In their brief, filed late last week with the California Court of Appeal for the Fourth Appellate District in San Diego, the attorneys ask the Court to allow a jury to determine whether a patent holder violates California antitrust laws by paying its generic competitors hundreds of millions of dollars not to compete.

That's what happened between 1997 and 2004 when Bayer, with U.S. headquarters in Pittsburgh, Pa., signed an exclusionary reverse payment agreement with Montvale, N.J.-based Barr Laboratories, under which Barr agreed not to produce its generic version of Cipro.  In exchange, Bayer paid Barr and other generic drug manufacturers $398.1 million, preserving Cipro as the only choice for consumers and thereby maintaining, even increasing, its cost.

While the patent on Cipro expired in 2004, attorneys representing consumers and third-party payers argue that those groups paid far more for the drug than they should have.  They're asking the California appellate court to set aside a summary judgment granted by a lower court in Bayer's and Barr's favor last year. 

In that ruling, California Superior Court Judge Richard E.L. Strauss adopted the standard set forth in a decision by the U.S. Court of Appeals for the 2nd Circuit in a reverse payment case involving the drug Tamoxifen. However, a panel of judges ruling in a separate Cipro case at the 2nd Circuit recently identified "compelling reasons" to reconsider the Tamoxifen case, and went so far as to invite the Cipro plaintiffs to petition for a hearing of the entire court to address "the important interests identified."

In addition, the Obama Administration; members of Congress; the Federal Trade Commission; the Department of Justice, state attorneys general, including the Attorney General of California; public interest groups; scholars and medical professionals are on record saying these exclusionary reverse payment agreements are wrong.

"The whole point of having generic drugs is to lower health care costs, including the money consumers pay for badly needed medications," says attorney Dan Drachler of Zwerling, Schachter & Zwerling, LLP, who represents the plaintiffs along with attorney Joseph Saveri of Lieff Cabraser Heimann & Bernstein, LLP.  "The agreements between Bayer and the other companies avoided the law, kept prices high and protected unreasonable profits for the drug manufacturers - profits paid for by everyone who bought the drug.  If we truly are concerned about the high cost of health care in this country, courts must enforce the antitrust laws and prohibit exclusionary reverse payment agreements."

With offices in New York City, Garden City, N.Y., and Seattle, Zwerling, Schachter & Zwerling, LLP attorneys play a leading role in numerous major securities cases, complex commercial litigation and antitrust matters pending in federal and state courts across the nation. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class-action litigation.

More information is available at http://www.zsz.com.

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, Tenn., is among the largest law firms in the United States that represents plaintiffs only.  The firm has a comprehensive practice which includes antitrust, dangerous or defective products, environmental damage, and employment discrimination.  The firm has a national reputation for professional integrity and the efficient and responsible prosecution of its clients' claims.

More information is available at http://www.lieffcabraser.com.

For more information about the appeal in the California Cipro class-action case, please contact Mark Annick at 800-559-4534 (office), 214-213-1754 (mobile) or mark@androvett.com.


'/>"/>
SOURCE Zwerling, Schachter & Zwerling, LLP
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. Project on Emerging Nanotechnologies and Consumers Union collaborate on ConsumersTalkNano
2. Consumers Call On Interstate Stem Cell Group To Endorse Open Meetings
3. Genelex Corporation Defends Consumers Right to Obtain DNA Information:
4. Trusted LASIK Surgeons Welcomes Mobile Alabama Expert Refractive Eye Surgeon Richard Duffey, M.D. to Its LASIK Directory For Consumers
5. Consumers Looking to Sustainable Food Production to Feed Global Population
6. AIM Pharmakon (API) Announced a New Proprietary Premium-Quality Natural Concentrated Liquid Calcium and Mineral Supplement Now Available Direct to Consumers
7. Trusted LASIK Surgeons Welcomes Leading Laser Expert and Inventor Jon Dishler, M.D., to Its Unique LASIK Eye Surgeon Directory for Consumers
8. AGA Institute and Horizon Therapeutics Launch Connect to Protect Program to Educate Physicians and Consumers on Risks Associated With NSAID Use
9. I Walk Because Program Gives Consumers a Voice
10. iSource Networks Partners with inVentiv Health to Develop New Technology Platform for Reaching Healthcare Consumers
11. BioMarin Licenses Technology From Leading Cystic Fibrosis Research Laboratory at the University of California, San Francisco
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/23/2017)... ... March 23, 2017 , ... ... today announced the hire of Dr. Sigmund “Sig” Floyd as Vice President ? ... partnerships and joint development activities. , “Dr. Floyd’s career has spanned 30 years ...
(Date:3/22/2017)... Good Start Genetics, a leading family genomics ... million covered lives mark through its most recent payor ... . With newly signed contracts nationally and others ... payor acceptance based on the quality of its science, ... its industry-leading customer care and support and its published ...
(Date:3/22/2017)... 22, 2017 /PRNewswire/ - FACIT announced a seed ... "Propellon"), a start-up created by FACIT focused on ... investment, combined with non-dilutive capital, achieves a targeted ... funding enables Propellon to accelerate the nomination of ... financing and/or entering a strategic partnership for clinical ...
(Date:3/22/2017)... ... March 21, 2017 , ... Proper glycosylation is critical ... desired increase and/or decrease in antibody-dependent cellular cytotoxicity or complement-dependent cytotoxicity, there is ... antibodies. , To meet this demand, the team at SCIEX has developed ...
Breaking Biology Technology:
(Date:3/2/2017)... Summary This report provides all ... and its partnering interests and activities since 2010. ... The Partnering Deals and Alliance since 2010 report provides ... of the world,s leading life sciences companies. ... ensure inclusion of the most up to date deal ...
(Date:2/28/2017)... -- News solutions for biometrics, bag drop and New ... At ... 16 March, Materna will present its complete end-to-end passenger journey, ... a real benefit for passengers. To accelerate the whole passenger ... point solutions to take passengers through the complete integrated process ...
(Date:2/22/2017)... , Feb. 22, 2017 With ... 2021, ABI Research identifies four technologies that innovative ... to secure significant share in the changing competitive ... and passive authentication.   "Companies can ... comes to security," says Dimitrios Pavlakis , ...
Breaking Biology News(10 mins):