Asacol Plaintiffs’ Monopolization Claims Proceed

End-Payor Purchasers of Asacol (400mg), Asacol HD, and Delzicol can proceed on nearly all their monopolization claims against Allergan plc, Allergan, Inc., Allergan USA, Inc., Allergan Sales, LLC, and Warner Chilcott Limited after Judge Denise Casper of the U.S District Court of the District of Massachusetts largely denied Defendants’ motion to dismiss.  The District Court held that Plaintiffs adequately alleged an unlawful anticompetitive “product hop” by the Allergan Defendants but it dismissed Plaintiffs’ second claim against Allergan and alleged co-conspirators Zydus Pharmaceuticals USA Inc. and Cadila Healthcare Limited for allegedly entering into a reverse payment “pay-for-delay” scheme.

Judge Casper’s decision adds to a growing number of decisions that have recognized the adequacy of pleadings alleging anticompetitive effects deriving from pharmaceutical manufacturers’ “product hopping” business practices.  As the District Court noted: “Other district courts that have considered product hopping allegations at this stage concur, concluding that well-pled allegations about consumer coercion in light of the distinct nature of the pharmaceutical drug market may establish plausible antitrust liability.”  Opinion, No. 15-cv-12730, ECF No. 110, at 20 (D. Mass. July 20, 2016).  To read the opinion in its entirety, click here.

Plaintiffs are represented by Wexler Wallace, Wagstaff & Cartmell, Gustafson Gluek, Spector Roseman Kodroff & Willis, and others.