Ranbaxy Racketeering Suit Should Continue: Judge
A Massachusetts federal magistrate judge has recommended that a class action suit alleging anticompetitive and racketeering behavior by Ranbaxy and Sun Pharmaceuticals before the entry of two generic drugs on the market should not be dismissed. The complex suit raises issues not tried before and thus there was little precedent to guide the magistrate judge in making his recommendation.
A footnote to the judge’s report quotes the companies’ attorney as saying that “the reason there isn’t a lot of precedent is I don’t believe anyone has ever taken a case of fraud on the FDA and tried to package it as an antitrust case.” And the plaintiffs’ counsel said this type of case hasn’t been brought before but “these facts are pretty rare. FDA hasn’t had to come down on a manufacturer like this ever before … with respect to good manufacturing practices … the kind of misconduct that would happen here hasn’t happened before.”
In a 54-page opinion, the judge goes into a detailed discussion of the FDA generic drug regulatory process and the many issues the agency has had with Ranbaxy. It discusses the company’s efforts in the late 1990s and 2000s to file many ANDAs to obtain 180-day marketing exclusivity as the first filer. Included in those filings were the ANDAs for Diovan and Valcyte that are the subject of the suit.
While the companies asked to have the suit dismissed, the magistrate judge found that the plaintiffs had raised enough antitrust and racketeering issues for it to proceed.