Bristol-Myers Squibb will pay a $2.1 million penalty for failing to inform the U.S. Federal Trade Commission about the company’s earlier efforts to delay a generic form of Plavix, its blockbuster blood clot preventer. According to the FTC, the civil penalty is the largest ever allowed by the commission. Bristol-Myers was charged in 2006 with entering into agreements with Canadian drug maker Apotex in an effort to delay a U.S. launch of Apotex’s copycat form of Plavix. This was in return for payments to Apotex from Bristol-Myers.
Despite the alleged arrangement, privately-held Apotex subsequently sold its generic in the United States for a short time before a federal judge barred future shipments of the product. Bristol-Myers’ arrangement with Apotex violated the Medicare Modernization Act, which requires that certain drug company agreements be reported to the FTC and to the Department of Justice. In May, Bristol-Myers paid $1 million to settle federal criminal charges that it lied to the Department of Justice about its Plavix agreement with Apotex.
In December, Bristol-Myers settled an investigation over the same matter with the New York Attorney General’s office on behalf of all 50 states and the District of Columbia for $1.1 million. The latest settlement with the FTC brings to an end all federal and state investigations into the negotiations with Apotex, which led to the ousting of Bristol-Myers’s then-chief executive, Peter Dolan, in September 2006.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.