AbbVie Ordered to Pay for Blocking Generic Versions of Drug

AbbVie Ordered to Pay $448 Million for Blocking Generic Versions of Drug

Jul 26,2018

Last month, pharmaceutical company AbbVie Inc. and its partner Besins Healthcare Inc. were ordered to pay $448 million for illegally preventing generic versions of their product from getting to market. The decision was made by U.S. District Judge Harvey Bartle in Philadelphia, in response to a 2014 antitrust lawsuit filed by the Federal Trade Commission.

Pay for Delay Settlements Keep Generic Drugs Off the Market

According to the FTC’s lawsuit against AbbVie and Besins, the pharmaceutical companies filed baseless patent infringement lawsuits against Teva Pharmaceutical Industries Ltd. and Perrigo Company, delaying those companies from releasing their generic versions of AndroGel. The companies then settled the lawsuits in exchange for the delay of the generic companies’ drug.

Judge Bartle determined that AbbVie and Besins illegally maintained their monopoly of their testosterone replacement drug AndroGel by filing “sham litigation” against generic drug companies. These lawsuits, known as “pay for delay” settlements, delay the release of generic versions of drugs, keeping prices high for the brand name versions.

The judge stated that Perrigo would have released its version of AndroGel in June 2013, rather than December 2014, if not for the sham litigation. The $448 million AbbVie and Besins were ordered to pay enocompasses their profits from June 2013 to August 2017.

“Pay for delay settlements are an unethical way for drug companies to keep a monopoly on the market and keep prices high for consumers. We are pleased that companies are finally being penalized for these sham lawsuits,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured by a drug and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, El Centro, and Yucca Valley, and represent clients through the entire California Low Desert and High Desert communities.

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