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Drug firm reaches settlement with territories and US states
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Posted on Oct 21 2004
Local consumers who have purchased the antidepressant drug Remeron may soon receive compensation if the New Jersey federal court approves a proposed $36-million settlement between the drug manufacturer and U.S. states and territories.
The states and drug maker Organon USA Inc. and its parent company Akzo Nobel N.V. have reached a settlement, which was filed yesterday with the court for approval.
In a media release, CNMI Attorney General Pamela Brown said the Commonwealth stands to benefit from an approved settlement.
She also disclosed that her office would implement a claims administration process for consumers who purchased Remeron or its generic equivalent between June 15, 2001 and the present once the proposed settlement is approved.
“The defendants in this case abused the regulatory scheme to stifle competition and prevent consumers from having access to low-cost generic equivalents of this drug. This lawsuit represented a way for us to lower prescription drug costs for consumers,” Brown said.
“The states’ complaint alleged that Organon unlawfully extended its monopoly by improperly listing a new ‘combination therapy’ patent with the U.S. Food and Drug Administration. In addition, the complaint alleged that Organon delayed listing the patent with the FDA in another effort to delay the availability of lower-cost generic substitutes,” Brown said in the media release.
The attorney general said the company’s actions jacked up the drug’s prices for consumers. Remeron became the company’s top-selling drug, the sales of which reached over $400 million at its peak, according to Brown.
Besides agreeing to a monetary settlement, Organon also agreed to a court order compelling the company to make timely listing of patents and prevent it from submitting false or misleading listing information to the FDA.
