Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Supermarket Chain Brings Antitrust Suit over Delays in Marketing of Generic Nexium, (May 9, 2013)

By William Zale, J.D.

Supermarket chain Giant Eagle has brought an antitrust suit against pharmaceutical firm AstraZeneca and generic drug makers for agreeing to delay the marketing of generic versions of the drug Nexium (esomeprazole magnesium)—a leading prescription drug used to treat the symptoms of gastroesophageal reflux disease. The complaint in Giant Eagle, Inc. v. AstraZeneca LP was filed in the federal district court in Pittsburgh on May 8, 2013.

AstraZeneca, which sells Nexium, allegedly has monopolized the market for delayed-release esomeprazole magnesium by entering into an illegal conspiracy with three generic manufacturers and potential market entrants, Ranbaxy, Teva, and Dr. Reddy’s. In furtherance of their illegal conspiracy, AstraZeneca and each of the generic manufacturers respectively entered into anti-competitive agreements in which AstraZeneca paid financially-valuable consideration in return for their agreement to delay their marketing of generic versions of Nexium until May 27, 2014, according to the complaint.

Giant Eagle asserts monopolization and restraint of trade in violation of the Sherman Act and the Ohio Valentine Act. Giant Eagle requests injunctive relief, treble damages, attorney’s fees, and costs.

The case is No. 2:13-cv-00658-LPL.

Attorneys: Bernard D. Marcus (Marcus & Shapira LLP) for Giant Eagle, Inc.

Companies: Giant Eagle, Inc.; AstraZeneca LP; AstraZeneca AB; Aktiebolaget Hassle; Ranbaxy Pharmaceuticals, Inc.; Ranbaxy, Inc.; Ranbaxy Laboratories Ltd.; Teva Pharmaceuticals Industries, Ltd.; Teva Pharmaceuticals USA, Inc.; Dr. Reddy’s Laboratories Ltd.; Dr. Reddy’s Laboratories, Inc.

News: Antitrust