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Warner Chilcott To Pay $5.5M To Settle Suit Alleging Company Kept Generic Contraceptive

By: Legal - Law News

Warner Chilcott will pay $5.5 million to settle a lawsuit that alleges the company conspired with Barr Pharmaceuticals to block a generic form of Warner's oral contraceptive Ovcon from entering the market, New York state Attorney General Andrew Cuomo (D) said on Tuesday, Reuters reports.

The suit, filed in November 2005, alleges that Warner paid Barr $20 million for a five-year exclusive license for a generic version of Ovcon (Bansal, Reuters, 6/13). Warner in September 2006 waived the exclusivity agreement, and Barr announced its subsidiary Barr Laboratories would produce a generic version of the drug called Balziva to sell in the U.S. beginning in October 2006 (Kaiser Daily Women's Health Policy Report, 9/28/06).

According to the settlement, Warner will pay money to 34 states and Washington, D.C. In addition, the company has agreed not to make agreements that could keep potential generic competitors from entering the market (Reuters, 6/13). Louisiana Attorney General Charles Foti (D), who also prosecuted the case, said the settlement will help ensure that Warner does not enter similar agreements in the future (New Orleans Times-Picayune, 6/14).

A representative from Warner was unavailable for comment, according to Reuters. According to Cuomo's office, the states involved in the suit will continue the case against Barr (Reuters, 6/13).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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