Court Permits Patent Acquisition Antitrust Case to Proceed

In Federal Trade Commission v. Ovation Pharmaceuticals Inc., and State of Minnesota v. Lundbeck Inc.,a Minnesota District Court Judge Joan N. Ericksen denied Lundbeck Inc.’s attempt to toss out the pair of suits launched by the FTC and the state of Minnesota, accusing the drug-maker of jacking up the price of NeoProfen, a drug used to treat a heart condition in premature infants, after cornering the market in 2006 by acquiring NeoProfen while it was awaiting U.S. Food and Drug Administration approval, while also holding the rights on Indocin, the only other drug to treat this specific heart condition.  In denying Lundbeck’s motions, the court rejected Lundbeck’s arguments that 1) the two drugs are not in the same market because doctors recommend the drugs based on their clinical and safety attributes and not because of their price; and 2) genetic competition of the drugs is imminent, and held that a reasonable finder of fact can conclude that Lundbeck possessed monopoly power. 

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