E-drug: NYT on US lawsuits against large drug companies
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[From today's New York Times. Copied as fair use. KM]
http://www.nytimes.com/2002/05/30/health/30DRUG.html?tntemail1
May 30, 2002
AARP Joins Three Lawsuits Against Large Drug Companies
By ROBERT PEAR
WASHINGTON, May 29 � AARP joined three lawsuits against large drug companies
today, saying the companies had kept prices artificially high and thwarted
competition from lower-priced generic drugs in violation of federal
antitrust laws.
The cases involve BuSpar, an anti-anxiety drug made by Bristol-Myers Squibb;
K-Dur 20, a potassium supplement made by Schering-Plough; and tamoxifen, a
breast cancer medicine sold by AstraZeneca under the name Nolvadex.
Older Americans are among the heaviest users and the biggest beneficiaries
of new medicines. But because of drug costs, the pharmaceutical industry
finds itself increasingly at odds with its biggest customers, including not
only elderly people, but also employers and state governments, which
purchase huge volumes of prescription drugs for poor people on Medicaid.
William D. Novelli, executive director of AARP, said the group, formerly
known as the American Association of Retired Persons, was turning to
litigation as a new tactic because its members were frustrated.
People 65 and older account for more than 40 percent of prescription drug
sales and recognize that such drugs are an essential part of modern
medicine, but "many find the costs to be prohibitive," Mr. Novelli said.
Mr. Novelli asserted that the drug companies had manipulated patent laws and
entered what he described as "collusive agreements" to block access to
generic versions of the three prescription medicines.
The industry denied the accusations and denounced AARP for joining a small
army of plaintiffs' lawyers in seeking monetary damages from drug companies.
"Instead of working with our elected representatives in Congress and the
White House, AARP has chosen to team up with the nation's trial lawyers,"
said Jeffrey L. Trewhitt, a spokesman for the Pharmaceutical Research and
Manufacturers of America, a trade association. "That's not going to resolve
the pharmaceutical access problem."
Eric Weissenstein, an analyst at Charles Schwab's Washington Research Group,
said the lawsuits could be significant regardless of who ultimately prevails
in court. "If enough pressure is brought to bear through litigation like
this, it could affect the strategies that drug companies use to set prices
and to preserve their market positions," Mr. Weissenstein said.
AARP is open to people 50 and older. About half of the 35 million members
have reached age 65. The group's new initiative comes as Congress considers
proposals to add outpatient drug benefits to Medicare, the federal health
insurance program for the elderly and the disabled.
Mr. Novelli asserted that "Medicare drug coverage will not be sustainable if
drug prices continue to skyrocket."
Numerous lawsuits have been consolidated in the three cases that AARP joined
today. And the group's participation adds to the legal firepower of the
plaintiffs, though it does not ensure that they will prevail.
One member of AARP, Helen M. Donega, 69, of North Adams, Mass., said she had
had breast cancer and was paying $1,200 a year for the brand-name version of
tamoxifen until she and her doctor found they could get a generic equivalent
over the Internet from Canada for $126 a year.
Mary Lynn Carver, a spokeswoman for AstraZeneca, said the drug was still
protected by patent in the United States, but not in Canada, where she said
seven or eight generic versions are available.
Pretrial proceedings are under way in all three cases, and plaintiffs have
had some preliminary successes.
In February, a federal district judge in New York City ruled that
Bristol-Myers Squibb had acted improperly when it kept generic versions of
BuSpar off pharmacy shelves by filing for an additional patent for the drug
just as the original patent was about to expire. The judge, John G. Koeltl,
said the company was trying "to justify taking property that belongs to the
public."
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