ANOTHER DRUG MAKER TO PAY STATES FOR PRICE INFLATING ANTITRUST VIOLATIONS

April 25, 2003

 APRIL 25, 2003 

CONTACT: CHRISTINA MOYLAN, ASSISTANT ATTORNEY GENERAL
207-626-8838

Attorney General Steven Rowe today announced a final resolution with Bristol-Myers Squibb Company that would settle the antitrust lawsuit involving the cancer-fighting drug, Taxol.  Maine joined the other U.S. states and territories in alleging that the manufacturer unlawfully blocked the entry of less expensive generic drugs into the marketplace.

The settlement calls for the states and consumers to share in the national $55 million recovery and for Bristol-Myers Squibb to refrain from anti-competitive conduct and provide free quantities of Taxol to health care facilities serving certain eligible patients. 

The settlement was filed yesterday with U.S. Federal District Court Judge Emmet G. Sullivan in the Washington, D.C., and requires approval from the court to become effective. If approved, the attorneys general will implement a claims administration process for consumers who purchased Taxol or its generic equivalent between January 1, 1999 and February 28, 2003. The settlement sets aside approximately $12 million of the total for a nationwide consumer distribution to compensate consumers who may have paid higher prices for Taxol.  State programs that overpaid for Taxol will split about $37 million.  The ultimate allocation among the states and territories has not yet been determined. 

            Assistant Attorney General Christina Moylan, who handled the case for Maine, said, “For purchasers of prescriptions, the availability of a generic equivalent may be the only way they can afford essential medical treatment.  This settlement not only compensates consumers and the State of Maine who have overpaid for this drug, it also helps pave the way for quicker access to much needed generic drugs in the future.” 

            Attorney General Rowe said, “We will continue to scrutinize every aspect of prescription drug acquisition to identify unlawful conduct and reduce prices for consumers.”

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