The settlement will require the two generics companies to end a ‘no challenge’ agreement made between the two companies back in 2010, as part of an agreement on generic Lipitor (atorvastatin), for which Ranbaxy had ‘first-to-file’ US exclusivity [1]. The settlement resolves concerns that the agreement unlawfully restricted competition, while also requiring the companies to commit not to enter into similar agreements in the future, as well as making a monetary payment to the state of New York of US$300,000.

Under the agreement the generics companies committed not to challenge certain regulatory exclusivities held by the other, served to protect each party’s market positions with respect to dozens of drugs and reduced the risk that each would face greater competition for its generics.

‘Agreements between drug manufacturers to protect each other’s market positions violate fundamental principles of antitrust law and can lead to higher drug prices,’ said Attorney General Schneiderman. Adding that his office would ‘intervene aggressively to root out collusion among industry players and ensure that New Yorkers receive access to critical drugs at fair value’.

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Reference

1.   GaBI Online - Generics and Biosimilars Initiative. Generic atorvastatin partnership [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Mar 7]. Available from: www.gabionline.net/Generics/News/Generic-atorvastatin-partnership

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