Copaxone

Plaintiffs assert claims on behalf of drug wholesalers against Teva Pharmaceuticals Industries, Ltd., Teva Pharmaceuticals USA, Inc., Teva Neuroscience, Inc., Teva Sales & Marketing, Inc. (collectively, “Teva”) related to their practices concerning their brand drug, Copaxone, which is used in the treatment of multiple sclerosis. In particular, Plaintiffs allege that Teva engaged in a multi-faceted scheme to suppress lower priced, generic competition to Copaxone. This scheme included: (i) entering into exclusionary contracts with pharmacy benefit managers (“PBMs”) whereby the PBMs would always dispense brand Copaxone instead of generic versions, (ii) launching a new dosage size of brand Copaxone soon before generic competition became available in order to switch the market to the new dosage size and away from cheaper generics, (iii) implementing a “Dispense as Written” campaign based on representations to physicians that generic Copaxone was less effective than the brand, and (iv) paying millions in kickbacks to charitable foundations with the intention that the “donations” would be used to subsidize patient out of pocket costs for brand Copaxone only. Plaintiffs allege that Teva’s anticompetitive scheme began in 2015 and caused drug purchasers to overpay for Copaxone up through the present. Plaintiffs assert claims under section 2 of the Sherman Act and for violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”).

Plaintiffs filed their complaint on March 7, 2022. Soon thereafter, complaints were filed against Teva on behalf of third-party payors, who similarly alleged that Teva’s anticompetitive scheme caused them to overpay for Copaxone. The Court ordered that the cases be consolidated and coordinated on April 6, 2022, and Teva filed motions to dismiss the complaints on June 15, 2022. The motions are fully briefed and pending before the Court.