Adalat
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About Adalat
Adalat is a calcium channel blocker primarily used to treat hypertension (high blood pressure) and other cardiac conditions, such as congestive heart failure and cardiomyopathy. It may also be used to treat migraine headaches and Raynaud's syndrome.
The generic name for Adalat is nifedipine - also the active ingredient of Adalat. The brand name and generic equivalents are marketed in 30 mg, 60 mg, and 90 mg dosage forms.
PAL Member Litigation
In July 2002, PAL filed suit against the two generic manufacturers of Adalat. The complaint alleges that purchasers of the 30 mg and 60 mg dosages of the generic and brand name Adalat have been hurt by anticompetitive, illegal actions of the two manufacturers of the generic drugs. Specifically, the complaint alleges that Elan Corporation PLC (Elan) and Biovail Corporation (Biovail) have colluded to keep a low cost generic off the market by dividing the market between themselves. Elan and Biovail are the only companies with U.S. Food and Drug Administration (FDA) approval to market 30 mg and 60 mg generics of Adalat. Instead of competing with one another in these two (30 mg and 60 mg) markets, Elan and Biovail agreed that only Elan would market the 30 mg generic Adalat and Biovail would market the 60 mg generic Adalat. Under the agreement, Biovail paid Elan approximately $45 million and Elan shared its profits with Biovail.
All Adalat cases have been centralized in the U.S. District Court for the District of Columbia. Elan and Biovail filed a Motion to Dismiss on October 15, 2003. Among other things, the Defendants argue that the organizational Plaintiffs (Health Care For All, AFSCME and Council 47) lack standing to sue on behalf of their members. Our opposition to the Motion to Dismiss was filed on December 15, 2003.
FTC Action
In August 2002, the Federal Trade Commission (FTC) issued a consent order against Elan and Biovail based on the collusive agreement between the two companies. The consent order ( www.ftc.gov/os/2002/08/biovaldo.pdf ) calls for numerous actions, most notably: (1) it requires the companies to terminate their agreement and begin production of both dosages, and (2) it prohibits the two manufacturers from entering into similar agreements in the future. It also contains strict reporting and notice requirements to ensure compliance with the terms of the consent order. Oral argument is set for Friday, May 7th and discovery is ongoing.
Update: All Adalat cases were centralized in one court. On October 15, 2003, Elan and Biovail filed a Motion to Dismiss. Unfortunately, on September 1, 2004, the judge granted this motion, dismissing the case in whole.
Court: U.S. District Court, District of Columbia (Judge Leon)
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