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Antitrust Keyed to Sullivan, 8th Ed.
Federal Trade Commission v. Lundbeck, Inc.
Citation:
650 F.3d 1236 (2011)Facts
Lundbeck, Inc. purchased the rights to Indocin IV from Merck in 2005 for $77.77 per treatment and immediately raised the price. In 2006, Lundbeck acquired NeoProfen from Abbott Laboratories before it reached the market and raised its price thirteen-fold two days after acquisition. By 2008, Indocin IV cost $1,614.44 per treatment and NeoProfen cost $1,522.50. Both drugs treat patent ductus arteriosus, a life-threatening heart condition affecting approximately 30,000 premature infants annually in the United States. The drugs have different active ingredients (indomethacin versus ibuprofen lysine), are not bioequivalents, and have different side effects. Until generic alternatives appeared in 2010, Lundbeck owned all FDA-approved drugs for PDA treatment. The district court heard testimony from five clinical pharmacists and seven neonatologists who stated that treatment decisions were based solely on perceived clinical advantages without regard to price.
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