| The news A jury in federal court in Boston this week awarded nearly $885 million in damages to pharmacies and wholesalers who said they were forced to overpay for a gastrointestinal drug because Takeda Pharmaceutical allegedly kept generic competition from the market. Under federal antitrust law, that award will triple when the court enters into a final judgement of the case. The case Amitiza is a constipation drug that Takeda previously marketed under a partnership with Sucampo Pharmaceuticals. In 2014, Takeda settled with Par Pharmaceuticals, which had sued challenging the drug’s patents. In exchange for a payment from Takeda, Par agreed not to market its Amitiza generic until 2021. Why this matters The Hatch-Waxman Act, passed in 1984, set up the framework for generic drugs. It secured additional protection and patent life for branded drugs and intellectual property associated with them while also giving generic drugmakers a streamlined, less expensive path to seek regulatory approval. Litigation is common, as generic drugmakers challenge the patents of branded drugs. These disputes usually settle, but the deals are sometimes called “pay-for-delay” deals because they keep generic competition from entering the market. While Takeda contends its deal was legal under Hatch-Waxman, the plaintiffs argued otherwise. The jury agreed with the plaintiffs arguments. Soundbite “We remain firm in our conviction that the plaintiffs’ case lacks merit, and we will vigorously pursue post-trial motions and an appeal,” Takeda said. —By Frank Vinluan |
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