Xyrem Antitrust Claims Survive Dismissal Motions

On August 13, 2021, U.S. District Judge Lucy Koh upheld antitrust claims brought against various pharmaceutical companies by purchasers of the narcolepsy medication Xyrem.

The Court held that Plaintiffs adequately alleged that a lower-priced generic version of Xyrem was delayed in part as a result of brand-name manufacturer Jazz Pharmaceuticals’ patent settlements with generic challengers Hikma Labs, Amneal Pharmaceuticals, Par Pharmaceuticals, and Lupin Pharmaceuticals. Among other violations, Plaintiffs claim an anticompetitive “no-AG” agreement between Jazz and Hikma under which (1) Hikma agreed to buy, relabel, and sell Xyrem as an “authorized generic” rather than manufacture its own generic version, and (2) Jazz agreed not to license Xyrem to any other firm. This agreement and Jazz’s ensuing agreements with other generic companies avoided the risk of competition had Xyrem patent litigation proceeded, Plaintiffs allege.

The Court further held that Plaintiffs adequately alleged an overarching conspiracy among all Defendants and that Jazz illegally monopolized the Xyrem market through sham petitioning to the FDA and sham litigation against generic drug manufacturers.

Dena Sharp serves as interim co-lead class counsel in the multidistrict litigation, representing plaintiff New York State Teamsters Council Health and Hospital Fund, a self-insured health plan that alleges it paid overcharges due to antitrust violations in the Xyrem market.

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