Teva To Pay $1.2B To Settle Charges That A Subsidiary Blocked Lower-Cost Generics
The Federal Trade Commission alleged Cephalon paid four competitors to delay marketing generic versions of its money-making sleeping pill, Provigil. The settlement is a victory in the federal government's efforts against a drug industry practice known as "pay-for-delay."
The Associated Press:
Teva Pays $1.2 Billion To Settle Pay-For-Delay Allegations
Federal regulators announced Thursday that Teva Pharmaceuticals Industries will pay $1.2 billion to settle charges that one of its subsidiaries illegally blocked the launch of low-cost generic versions of the blockbuster sleeping pill Provigil. (5/28)
The New York Times:
Teva Settles Cephalon Generics Case With F.T.C. For $1.2 Billion
The pharmaceutical company Cephalon had a cash cow on its hands. In the United States alone, its prescription drug Provigil, which treats sleep disorders, generated over $475 million in sales in 2005 and almost double that in 2007. It made up about half of Cephalon’s business. When the company was faced with an expiring patent and the prospect of generic drug makers selling far cheaper versions of Provigil, it chose to buy off the competition, according to federal regulators. (Ruiz and Thomas, 5/28)
Meanwhile, scope maker Olympus Corp. is under investigation by the Justice Department -
Los Angeles Times:
Justice Department Investigates Scope Maker Olympus Over Superbug Outbreaks
The Justice Department is investigating embattled scope maker Olympus Corp. and its role in recent superbug outbreaks at UCLA and other U.S. hospitals. The Japanese company said it received a subpoena in March from federal investigators that “seeks information relating to duodenoscopes that Olympus manufactures and sells.” The company disclosed the inquiry in a financial filing this month. (Terhune and Petersen, 5/28)
