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Drug patents struck down in
class-action suit January 14, 2004 New York State United Teachers' legal fight to make more generic drugs available to its members moved closer to victory with a court ruling in December. The federal Circuit Court of Appeals issued a summary judgment invalidating the remaining drug patents for Augmentin, an oral antibacterial commonly prescribed for ear infections. NYSUT is party to a class-action suit filed against drug patent holder GlaxoSmithKline, claiming that company marketing and patent abuse violate antitrust laws. Other plaintiffs are individuals, plus the welfare fund of the United Federation of Teachers, NYSUT's affiliate in New York City schools. GlaxoSmithKline is the manufacturer of Augmentin. NYSUT's case is based, in part, on allegations that the company obtained multiple, redundant patents on Augmentin in an effort to keep competitors from bringing to market lower-priced generic products. The case, which had been stayed pending the circuit court ruling, has now been reopened. "The federal circuit's decision in upholding the summary judgment against the patent holder, GlaxoSmithKline, is terrific," said Barbara Hart, attorney for Goodkind Labaton Rudoff and Sucharow, the law firm representing NYSUT. "It clearly bolsters the claim in NYSUT's case that says that GSK's marketing and patent abuse are in violation of the antitrust laws." "Due to NYSUT's continued advocacy and hard work in recent years, the generic equivalents of this popular antibiotic will enter the free market, thereby lowering costs and saving union welfare benefit funds, workers and retirees millions," said Alan Lubin, NYSUT executive vice president. The remaining patents on Augmentin, which the generic companies had challenged, were ruled invalid in November by the federal court. The lawsuit claims that the defendant's anti-competitive conduct includes a listing for duplicative patents with the Food and Drug Administration, aggressive litigation to extend its monopoly, and incentives to steer prescribing behavior and placement, just before numerous patents were to expire. "NYSUT is ready to act on behalf of its members and affiliated locals to address the escalating costs associated with prescription drug benefits," said Lubin. UFT's Welfare Fund provides prescription drug benefits for educators who work in New York City public schools, including about 74,000 teachers and 17,000 classroom paraprofessionals, along with other school workers and retirees, according to court documents. - Liza Frenette |
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