State/Federal-Minnesota AG and FTC Sues on Monopoly in Drug Treatments

Minnesota Attorney General Lori Swanson has filed a lawsuit in the U.S. District Court in Minnesota, alleging that Ovation Pharmaceuticals Inc., has illegally maintained a monopoly in drug treatment in violation of Section 7 of the Clayton Act, 15 U.S.C. §[<00A7>][<00A7>] 18, and Section 5 of the FTC Act, 15 U.S.C. §[<00A7>][<00A7>] 45. The Federal Trade Commission has filed a similar lawsuit in the same court. The complaints say that Ovation purchased rights to Indocin in August 2005 and then acquired the U.S. rights to NeoProfen in January 2006. NeoProfen and Indocin are the only two pharmaceutical treatments sold in the United States to treat a potentially life-threatening congenital heart defect known as patent ductus arteriosus (PDA). According to the FTC's complaint, once it acquired NeoProfen, "Ovation immediately raised the price it charged hospitals for Indocin nearly 1,300 percent, from $36 to approximately $500 per vial. When Ovation launched NeoProfen in July 2006, it set a price of approximately $483 per vial, essentially matching Indocin's price." The FTC complaint says Ovation has maintained prices for the two PDA drugs at or above this level for more than two years.


The complaints ask the court to order divestiture and any further actions needed to establish competition that would have existed but for Ovation's unlawful acquisition of NeoProfen; to permanently enjoin Ovation from acquiring or maintaining any simultaneous legal or beneficial interest in NeoProfen and Indocin; and forfeiture of all unlawfully obtained profits.

State-Illinois Genetic Information Protection

Illinois has a law taking effect in 2009, similar to the recent federal GINA legislation. SB 2399/PA 95-0927 amends the current Genetic Information Privacy Act and prohibits an employer from soliciting, requesting or purchasing genetic information of an employee as a condition of employment, or to affect the terms, conditions, or privileges of employment because of genetic testing or genetic information of an employee or family member. In addition, the law forbids employers to limit, segregate, or classify employees in any way that would deprive any employee of employment opportunities or otherwise adversely affect employment status because of genetic testing or genetic information. Finally, similar to other employment discrimination legislation, it will also be illegal to retaliate through discharge or in any other manner if an employee alleges violation of this act.

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