Antitrust Law Daily Wrap Up, ANTITRUST—D. N.J.: Mylan awarded supplemental damages of $13.7M in generic Paxil case, (Jan 23, 2015)

By Linda O’Brien, J.D., LL.M.

The federal district court in Trenton, New Jersey has granted generic drug manufacturer Mylan Pharmaceuticals supplemental damages of nearly $13.7 million in its action against GlaxoSmithKline over the sale of generic versions of Paxil by Canadian pharmaceutical company, Apotex, Inc. The parties stipulated to Mylan’s request for supplemental damages as well as pre-judgment interest (Mylan Inc. v. SmithKline Beecham Corporation, January 22, 2015, Pisano, J.).

Pharmaceutical company SmithKline Beecham Corporation—now known as GlaxoSmithKline (GSK)—manufactures the antidepressant drug paroxetine hydrochloride under the brand name Paxil. In 2007, after generic drug maker Mylan Pharmaceuticals filed an antitrust suit against GSK, the parties reached a settlement agreement granting Mylan the exclusive right to sell generic versions of Paxil for nine years in exchange for royalty payments to GSK. In 2010, GSK settled a separate suit with Canadian drug maker Apotex to resolve its claims that GSK improperly delayed entry of generic Paxil into the market. Under the settlement, Apotex was allowed to sell GSK products, including generic paroxetine made and supplied by GSK.

Mylan sued GSK, alleging that the Apotex licensing arrangement was a breach of the exclusive contract,since GSK provided Apotex with its own generic form of paroxetine, which was sold in direct competition with Mylan’s generic product. Following a trial in March 2014, a jury awarded Mylan $106.7 million in damages. In July 2014, the court granted Mylan’s motion for an accounting. Subsequently, GSK filed an appeal of the judgment and Mylan moved for supplemental damages.

Pursuant to a stipulation between the parties, the court granted Mylan’s request for supplemental damages in the amount of almost $13.7 million, along with pre-judgment interest of $248,000. The court noted that the stipulation and order did not waive GSK’s right to pursue its pending appeal of the original judgment.

The case is No. 3:10-cv-04809-JAP-LHG.

Attorneys: Wade G. Perrin and Frank G. Smith, III (Alston & Bird LLP), and John Michael Vazquez (Critchley, Kinum & Vazquez) for Mylan Inc. and Mylan Pharmaceuticals, Inc. Thomas A. Cunniff (Fox Rothschild LLP) and F. Christopher Mizzo (Kirkland & Ellis LLP) for SmithKline Beecham Corporation.

Companies: Mylan Inc.; Mylan Pharmaceuticals, Inc.; SmithKline Beecham Corporation

Cases: Antitrust NewJerseyNews