Suit Accuses Makers of Tamoxifen of Collusion

A class action suit has been filed against the makers of tamoxifen charging them with collusion.

The suit, filed by the Prescription Access Litigation Project (PAL), alleges that Zeneca, Inc.; AstraZeneca, PLC, maker of tamoxifen and Zeneca's successor resulting from the 1999 merger; and Barr Laboratories, Inc. sole distributor of a generic form of tamoxifen, illegally excluded competition, maintained artificially high prices, and blocked the introduction of a generic form of the drug. The suit alleges that Barr's generic drug's price is illegally inflated as a result of collusive agreements among the defendants.

According to the PAL suit, Barr challenged the tamoxifen patent in April 1992 but then dropped the challenge and signed a confidential settlement agreement with Zeneca. Zeneca agreed to supply Barr with tamoxifen for resale as a generic drug but it has been sold at a cost of only 5 percent less than the branded version, a much closer spread than most generic drugs. The PAL suit alleges that as a result of this collusive agreement, there has not been, and is not now, competition in the market for the drug.

Other sources: Prescription Access Litigation Project