What is the central dispute in the Cipro case?

California antitrust attorney Joseph Saveri discusses reverse payment, big pharmaceutical antitrust, and Bayer antitrust pricing.

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Transcript:

So the Cipro case involves what’s been – what’s frequently called a reverse payment and it has to do with an agreement among pharmaceutical companies. Cipro was a product that was an antibiotic or is an antibiotic manufactured by the Bayer Company. In the late 1990s, there were a number of generic drug manufacturers that were gonna come to market with a competitive product. In the United States we have a system that encourages the introduction of generic drugs, which have the effect of driving down prices and making drugs available to consumers more cheaply. In the Cipro case, we challenged an agreement between Bayer, the branded drug manufacturer, and a number of generic potential competitors in which Bayer agreed essentially to pay the generic drug competitors around $400,000,000.00 to stay out of the market. We say that agreement tis illegal under the antitrust laws, and we’re challenging that agreement.