Konfidi

via: FTC Sues Cephalon For Paying Off Generic Rivals

Quote:

The FTC contends Cephalon took that step because Provigil is such an important product - the pill generated $800 million last year, or 40 percent of sales. “The prospect of generic competition was a major financial threat to the company,” according to the FTC, which called the payments “purportedly independent business transactions.” But as a result, Cephalon forced patients and other consumers to pay hundreds of millions of dollars more a year than they otherwise would have.

“Cephalon prevented competition to Provigil by agreeing to share its future monopoly profits with generic drug makers poised to enter the market, in exchange for delayed generic entry. Such conduct is at the core of what the antitrust laws proscribe,” says Jeff Schmidt, the FTC’s Bureau of Competition director, in a statement. By making the payments, “Cephalon achieved a result that assertion of its patent rights alone could not.” Here’s the lawsuit.

In a statement, Cephalon defended its action and vowed to fight the suit: “Cephalon stands by the strength and validity of our Provigil patents and the legal basis for these settlements. We are disappointed that the FTC has determined to challenge these agreements as we believe they fully comply with both the spirit and letter of the antitrust laws. As importantly, our settlements confer a meaningful benefit to US consumers by providing for the entry of generic modafinil three years early.”

interesting……