MYLAN TO JOIN AUTHORIZED GENERICS MARKET

Mylan Laboratories intends to participate in the authorized generics market, despite its long-standing opposition to the controversial practice, according to the company's top executive.

"While we have not won every battle, we have achieved our well-publicized public objective of simply defining the rules of engagement for the generic pharmaceutical industry," Robert Coury, Mylan's CEO, said during a June investor conference call. "With the rules of engagement as they are presently defined, it is Mylan's intention going forward to participate in the authorized-generics market as appropriate."

Mylan plans to proceed cautiously in choosing which authorized-generics deals to pursue, said Coury, who noted the company participated in the authorized-generics market before he became CEO.

Coury noted that Mylan's policy shift was prompted by the courts, the FDA, the FTC and other players, all of whom have decided the practice of authorized generics is legal. "If you understand as we do now that it's OK to market authorized generics, why would you not go to the biggest, baddest generic distribution house there is in the industry in terms of distributing your product?" he said.

Mylan is still involved in litigation challenging brand firms' used of authorized generics. The company has a lawsuit pending against Procter & Gamble (P&G) and Watson Pharmaceuticals in the Superior Court of California for San Francisco County. Filed in March 2004, the lawsuit alleges Watson marketed an authorized generic of P&G's Macrobid (nitrofurantoin) during Mylan's 180-day exclusivity period for the drug.