Barr Settles Suit Alleging Company Kept Generic Contraceptive From Entering Market

Main Category: Women's Health / Gynecology
Also Included In: Sexual Health / STDs;  Medical Malpractice / Litigation;  Pharma Industry / Biotech Industry
Article Date: 29 Feb 2008 - 7:00 PDT

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Barr Pharmaceuticals has agreed to pay $5.9 million to settle a lawsuit alleging that Barr accepted $20 million from Warner Chilcott for agreeing to not sell a generic version of Warner's oral contraceptive Ovcon for five years, the Wall Street Journal reports. The lawsuit, filed by 34 states and Washington, D.C., in the U.S. District Court for the District of Columbia, alleged the agreement violated state and federal antitrust laws and artificially inflated the price of Ovcon. The settlement prohibits Barr from entering into noncompetition agreements with companies that sell brand-name drugs for the next 10 years (Gryta, Wall Street Journal, 2/26).

According to the suit, Barr received FDA approval for a generic form of Ovcon in 2004 and was planning to sell it at 30% less than Warner's price (AP/Yahoo! Finance, 2/27). In June 2007, Warner agreed to pay $5.5 million to settle its portion of the lawsuit. In addition, Warner agreed not to make agreements that could keep potential generic competitors from entering the market (Daily Women's Health Policy Report, 6/15/07).

Barr spokesperson Carol Cox said Barr has not admitted any wrongdoing and continues to believe the agreement with Warner was "legal, legitimate and pro-competitive." She added, "In addition, the settlement does not significantly alter Barr's ability to do business" (Wall Street Journal, 2/26). Iowa Attorney General Tom Miller said, "When generic drugs come on the market, it almost always results in competition and lower prices" (AP/Yahoo! Finance, 2/27).

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