Court Dismisses Another Part of Lipitor Pay-for-Delay Lawsuit

A federal judge has dismissed claims brought by a group of pharmacies that Pfizer and Ranbaxy forged an illegal deal to delay generic competition to Pfizer’s cholesterol drug Lipitor, marking another victory for the manufacturers in the class action filing.

The plaintiffs collectively had claimed that a 2008 patent infringement settlement between the companies amounted to an illegal payoff under which Ranbaxy promised to hold off on producing its own version of Lipitor, thus artificially prolonging the life of the more expensive brand version.

The New Jersey federal judge found last week that the pharmacies failed to calculate a reasonable valuation for the alleged reverse payment between Pfizer and Ranbaxy. Instead, they relied on statements made by Pfizer executives, which the judge ruled were insufficient to plausibly show a claim.

Pfizer and Ranbaxy had sought dismissal of the pharmacies’ claims, along with those brought by the class of patients who bought branded Lipitor (atorvastatin calcium), after successfully nixing ones brought by the direct purchaser class of distributors and retailers. The companies argued that the claims brought by the separate classes were virtually identical and should all be dismissed for failing to adequately state their case.

A key disadvantage for the plaintiffs, however, was the lack of any cash payment between Pfizer and Ranbaxy, which several federal judges have said is required to show a pay-for-delay deal under the Supreme Court’s recent FTC v. Actavis decision. — Bryan Koenig

Originally appeared in Drug Industry Daily, the pharmaceutical industry’s number one source for regulatory news and information. Click here for more information.