Warner Chilcott Settles Antitrust Suits On Oral Contraceptive

 |  About: Warner Chilcott Limited (WCRX)
by: Aaron F. Barkoff

Warner Chilcott (NASDAQ:WCRX) announced in a press release yesterday that it has reached tentative settlements with thirty-four states and the District of Columbia and indirect pharmaceutical purchasers that brought antitrust lawsuits concerning Warner Chilcott's oral contraceptive Ovcon 35.

Under the terms of the settlements, all claims will be dismissed in exchange for cash payments and/or product donations totaling $7.5 million. However, the settlements do not include related pending actions brought by direct purchaser plaintiffs.

As we previously reported, the Federal Trade Commission settled its own Ovcon 35 antitrust suit against Warner Chilcott last year. The FTC filed that case to nullify a reverse payment agreement between Warner Chilcott and Barr Labs (BRL) that would have prevented Barr from launching a generic version of Ovcon 35 until May 2009.

In the same case, the FTC also accused Barr of antitrust violations stemming from the reverse payment deal. We reported in February that the FTC is continuing to pursue its claims against Barr.