Bristol-Myers Squibb Settles Charges That It Blocked Generic Competition for Three Drugs
Federal Trade Commission officials on March 7 announced that Bristol-Myers Squibb has agreed submit to new restrictions on business practices as part of a settlement over allegations that the pharmaceutical company illegally delayed the sale of generic versions of three medications, Reuters/New York Times reports (Reuters/New York Times, 3/8). The settlement involves the cancer treatments Taxol and Platinol and the anti-anxiety medication BuSpar. According to FTC Chair Timothy Muris, Bristol-Myers claimed a new patent on BuSpar and listed the patent in an FDA registry hours before a competitor planned to distribute a generic version of the treatment; Bristol-Myers later filed suit against the generic competitor for violation of the new patent, a move that allowed the company to have an additional 30 months of sales exclusivity for BuSpar. In a separate case, the FTC alleged that Bristol-Myers paid a competitor more than $70 million to prevent the sale of a generic version of a medication. Under the settlement, Bristol-Myers for ten years cannot claim 30-month sales exclusivity for medications on which the company receives new patents (Wilke, Wall Street Journal, 3/10). Bristol-Myers can continue to file lawsuits against generic competitors for patent violations (Reuters/New York Times, 3/8). Bristol-Myers in January also agreed to pay $670 million to resolve lawsuits filed by states, generic pharmaceutical companies and pharmacies (Wall Street Journal, 3/10). On March 7, Bristol-Myers in U.S. District Court in New York City formalized the settlement with 29 states and Puerto Rico. According to New York Assistant Attorney General Richard Schwartz, Bristol-Myers will pay states between $93 million and $100 million to reimburse individuals and public health insurance programs, such as Medicaid, that purchased the three medications. More than $400 million of the settlement will reimburse others who purchased the medications, such as insurance companies, retail pharmacies and pharmacy benefit managers, the AP/Las Vegas Sun reports (Ho, AP/Las Vegas Sun, 3/7).
This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
