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PENNSYLVANIA RECORD

Friday, April 26, 2024

Walgreen and Kroger claim drug companies' actions hurt competition

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PHILADELPHIA — Two drug store operators are suing pharmaceutical companies Johnson & Johnson and Janssen Biotech Inc., citing alleged antitrust violations, conspiracy and unfair competition.

Walgreen Co. and The Kroger Co. filed a complaint June 6 in the U.S. District Court for the Eastern District of Pennsylvania for alleged unlawful exclusion of biosimilar competition to the brand-name drug Remicade.

According to the complaint, in 2016, despite introducing a much cheaper product than the defendants' Remicade, the products purchased by the plaintiffs from other drug manufacturers have garnered only a minimal share in the infliximab market because of the defendants' alleged exclusionary scheme to monopolize power through exclusionary contracts and bundled discounts that have effectively suppressed competition from Pfizer's and Merck's biosimilar products. 

As a result, plaintiffs and other drug purchasers have been deprived of the benefits of the free and open competition that the antitrust laws are intended to foster. 

The plaintiffs claim Johnson & Johnson and Janssen Biotech are guilty of using an overarching anticompetitive scheme to maintain their monopoly power in the relevant market using restrictive or exclusionary conduct, rather than by competing on the merits of their drug.

The plaintiffs request a trial by jury and seek a permanent injunction, award of overcharge damages, costs of suit, attorney's fees, and other and further relief as the court deems just and proper. They are represented by Barry L. Refsin and Maureen S. Lawrence of Hangley Aronchick Segal Pudlin & Schiller in Philadelphia.

U.S. District Court for the Eastern District of Pennsylvania case number 2:18-cv-02357-JCJ

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