Federal Trade Commission suing pharmaceutical companies

Federal Trade Commission suing pharmaceutical companies
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The Federal Trade Commission (FTC) recently filed a complaint with the U.S. District Court for the District of Columbia against pharmaceutical companies accused of violating antitrust laws.

The lawsuit alleges a 2017 agreement between Impax and Endo Pharmaceuticals eliminated market competition for Endo’s oxymorphone ER, a long-acting opioid. The lawsuit is against Impax’s owner, Amneal Pharmaceuticals, and Endo Pharmaceuticals, Endo International plc, and Impax Laboratories.

In January 2017, the FTC sued Impax and Endo for engaging in anticompetitive activities.

“The agreement between Endo and Impax has eliminated the incentive for competition, which drives affordable prices,” Gail Levine, FTC Bureau of Competition deputy director, said. “By keeping competitors off the market, the agreement lets Impax continue to charge monopoly prices while Endo and Impax split the monopoly profits. Today’s lawsuit is the latest demonstration of the FTC’s longstanding commitment to stopping anticompetitive conduct in the pharmaceutical industry.”

According to the FTC complaint, the drug generated nearly $160 million in revenues in 2016 alone. Impax’s generic version is the only extended-release oxymorphone drug on the market.

The FTC seeks a permanent injunction to prohibit Endo, Impax, and Amneal from engaging in similar conduct in the future, injunctive relief to undo the ongoing competitive effects from this agreement, and monetary relief.

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