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Staff Summary of Â鶹´«Ã½ Trade Commission Activities Affecting Older Americans: January 1999-August 2001: A Commission Staff Report to the United States Senate Special Committee on Aging
Prepared Statement of the Â鶹´«Ã½ Trade Commission On Competition in the Pharmaceutical Marketplace
Antitrust Issues in the Settlement of Pharmaceutical Patent Disputes, Part II
Hoechst Marion Roussel, Inc.; Carderm Capital L.P.; and Andrx Corporation
A consent order settled allegations in an administrative complaint that charged that Hoechst agreed to pay Andrx Corporation millions of dollars not to market and distribute a generic version of Hoechst’s branded Cardizem CD, a once-a-day diltiazem drug product used in the treatment of hypertension and angina. The consent order prohibits the companies from entering into agreements designed to restrict the entry of generic competitors in an attempt to monopolize relevant markets .
Announced Actions for April 30, 2001
Alaska Healthcare Network, Inc.
An association of 86 physicians practicing in the Fairbanks, Alaska area settled charges that the Alaskan Healthcare Network illegally formulated a fee schedule based on its members’ current prices for use in negotiations with third-party payers in an effort to obtain higher prices for medical services.
FTC Charges Hearst Trust with Acquiring Monopoly in Vital Drug Information Market
Consent Agreement Resolves Complaint Against Pharmaceutical Companies Hoechst Marion Roussel, Inc. and Andrx Corp.
FTC Charges Schering-Plough over Allegedly Anticompetitive Agreements with Two Other Drug Manufacturers
FTC Dismisses Complaint Against California Dental Association
VISX, Inc.orporated
On June 4, 1999 an administrative law judge dismissed charges against VISX, a key developer of laser eye surgery equipment and technology, known as photorefractive keratectomy (PRK). According to the 1998 administrative complaint., VISX and Summit Technology, the only two firms legally able to market equipment for PRK, placed their competing patents in a patent pool and shared the proceeds each and every time a Summit or VISX laser was used. The administrative law judge also dismissed charges that VISX acquired a key patent by inequitable conduct and fraud on the U.S. Patent and Trademark Office, ruling that complaint counsel failed to present evidence that an act of fraud was committed since information was not willfully withheld from the patent office. A final order settled the price fixing allegations in the 1998 complaint. On February 7, 2001, the Commission dismissed its complaint after the U.S. patent and Trademark Office issued a Reexamination Certificate of U.S. Patent No. 5,108,388.
Glaxo Wellcome plc, and SmithKline Beecham plc, In the Matter of
Under terms of a final consent order settling charges stemming from the merger of SmithKline and Glaxo Wellcome plc, the parties agreed to divest pharmaceutical products in six markets: antiemetics; the antibiotic, ceftazidime; oral and intravenous antiviral drugs for the treatment of herpes; topical antiviral drugs for the treatment of genital herpes; and over-the-counter H-2 blocker acid relief products.
Tyco International, Ltd., In the Matter of
Tyco settled antitrust concerns relating to its acquisition of Mallinckrodt, Inc. Tyco agreed to divest its endotracheal tube business to Hudson RCI.
FTC Reaches Record Financial Settlement To Settle Charges of Price-fixing in Generic Drug Market
Mylan Laboratories, Inc., Cambrex Corporation, Profarmaco S.R.I., and Gyma Laboratories of America, Inc.
Complaint filed in the U.S. District Court for the District of Columbia charged Mylan with restraint of trade, monopolization and conspiracy to monopolize the market for two generic drugs used to treat anxiety, lorazepam and clorazepate, through exclusive dealing arrangements. The Commission alleged that Mylan, Gyma Laboratories of America, Inc., Cambrex Corporation and Profarmaco S.R.L. conspired to deny Mylan’s competitors ingredients necessary to manufacture lorazepam and 40 clorazepate. The complaint sought consumer redress of at least $120 million and to enjoin the alleged illegal exclusive licensing agreements. The district court upheld the Commission’s authority to seek restitution in antitrust injunction actions under Section 13(b). The Commission approved a $100 million settlement. The opinion settled Commission concerns that Mylan, Gyma Laboratories of America, Inc., Cambrex Corporation and Profarmaco S.R.L. conspired to deny Mylan’s competitors ingredients necessary to manufacture lorazepam and 40 clorazepate. On Feburary 1, 2002, the court granted approval to a plan of distribution to injured consumers who paid the increased prices and state agencies, including Medicaid programs, that purchased the drugs while the illegal agreements were in effect. The funds were distributed by the states.
Antitrust Issues in Settlement of Pharmaceutical Patent Disputes
Department of Justice Sues Boston Scientific Corp. Seeking Civil Penalties and Other Relief for Violations of 1995 FTC Order
Fairbanks, Alaska Physician's Group to Settle FTC Charges Price-Fixing and Concerted Refusals to Deal with Health Plans
Appeals Court Upholds FTC Ruling; Doan's Must Include Corrective Message in Future Advertising and Labeling
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