Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Pharmaceutical companies allegedly monopolized generic enoxaparin market, (Oct 16, 2015)

By Greg Hammond, J.D.

Momenta Pharmaceuticals, Inc. and Sandoz, Inc. conspired to restrain trade and monopolize the market for generic enoxaparin—an anticoagulant drug used to prevent and treat deep vein thrombosis and myocardial infarction—by manipulating the generic approval process to bring the testing that is required to ensure every batch meets FDA standards within the scope of Momenta’s patents, according to a complaint filed in the federal district court in Nashville (The Hospital Authority of Metropolitan Government of Nashville and Davidson County, Tennessee v. Momenta Pharmacueticals, Inc., October 14, 2015).

The Hospital Authority of Metropolitan Government of Nashville and Davidson County, Tennessee, doing business as Nashville General Hospital, filed suit against Momenta and Sandoz, alleging that the two pharmaceutical companies tried to prevent any and all other generic drug manufacturers from selling enoxaparin, originally sold under the brand name Lovenox®. Specifically, Nashville General claims that Momenta pushed the U.S. Pharmacopeial Convention to adopt a specific form of polysaccharide testing as a requirement for any manufacturer of enoxaparin to show compliance with FDA standards. The defendants also purportedly entered into a licensing agreement in which they split profits realized from dominating the market for generic enoxaparin, so long as Momenta could use its patent to block other generic entrants. As a result of the conspiracy, purchasers of generic enoxaparin paid hundreds of millions of dollars in overcharges, the complaint alleges.

Nashville General seeks to represent a class of all persons and entities residing in the United States that, during the period from September 21, 2011, through the present, purchased Lovenox or generic enoxaparin directly from Sanofi-Aventis—the company that originally developed Lovenox—or defendants, or pursuant to a cost-plus contract with a wholesaler that purchased directly from Sanofi-Aventis or defendants. In addition, Nashville General brought claims for agreements in unreasonable restraint of trade, monopolization, attempted monopolization, and conspiracy to monopolize, in violation of Sections 1 and 2 of the Sherman Act.

The hospital seeks class certification; restitution and/or damages for the inflated prices; actual damages, as well as punitive or treble damages; pre- and post-judgment interest; equitable relief in the form of restitution and/or disgorgement for all illegal profits; injunctive relief; and costs and attorney fees.

The case number is 3:15-cv-01100.

Attorneys: Mark P. Chalos (Lieff, Cabraser, Heimann & Bernstein, LLP) for The Hospital Authority of Metropolitan Government of Nashville and Davidson County, Tennessee.

Companies: The Hospital Authority of Metropolitan Government of Nashville and Davidson County, Tennessee; Momenta Pharmaceuticals, Inc.; Sandoz, Inc.

News: Antitrust TennesseeNews