Motion to Dismiss Opposed in Exforge Pay-for-Delay Antitrust Suit
Faruqi & Faruqi represents a proposed class of direct purchasers of high blood pressure drug Exforge in a pay-for-delay antitrust suit against Novartis and Par Pharmaceutical. Faruqi seeks recovery of overcharges paid by wholesalers and others. The complaint alleges Novartis and Par agreed to allocate the market for Exforge, and restrict output of cheaper generic Exforge. To induce Par’s agreement, Novartis pledged not to launch an authorized generic version of Exforge, a second market allocation output restriction. This pay-for-delay agreement enabled Novartis to sell Exforge, and Par to sell its generic equivalent of Exforge, at artificially inflated, supra-competitive prices.
Plaintiffs allege that this conduct constituted horizontal market allocation and output restriction agreements, which are illegal per se under the antitrust laws, namely the Sherman Act and the Clayton Act. Novartis and Par recently filed a partial motion to dismiss, looking to have the conduct judged only under the rule of reason pursuant to FTC v. Actavis, Inc., 570 U.S. 136 (2013). In their opposition, plaintiffs explained that this case is different from Actavis. Actavis involved patent litigation resolved through a settlement. But Novartis never sued Par for patent infringement. The two simply agreed not to compete.
About Faruqi & Faruqi, LLP:
Faruqi & Faruqi focuses on complex civil litigation including: securities; antitrust; employment; and consumer class actions. The firm is headquartered in New York, and maintains offices in Delaware, Pennsylvania, Georgia, and California. Since its founding in 1995, Faruqi & Faruqi continues to serve as lead or co-lead counsel in high-profile cases that ultimately provide significant recoveries to investors, consumers and employees.
To contact the author of this blog or the offices of Faruqi & Faruqi, please contact us at (877) 247-4292.
About Kristyn Fields:
Kristyn Fields is an Associate in Faruqi & Faruqi’s New York office and focuses her practice on antitrust litigation with a focus on competition in the pharmaceutical industry.