[PIJIP Staff] On June 14th, 2017, the International Union of Operating Engineers Stationary Engineers Local 39 Health and Welfare Trust Fund, The Detectives’ Endowment Association, Inc., and David Mitchell (“Plaintiffs”) filed a class action antitrust complaint against Celgene Corporation (“Celgene”) over Celgene’s alleged exclusion of competition from the market for two drugs: thalidomide and lenalidomide. Celgene sells them under the brands Thalomid and Revlimid for treating leprosy and multiple myeloma.
According to the Complaint, Celgene has exploited its monopoly power by raising prices. In 2014, for example, the price of Thalomid was between $212 and $357 per capsule, in contrast to its price of only about $6 per capsule when it was initially approved to enter the market. Celgene set the price of Revlimid to nearly $500 per capsule in 2014. Since 2006, Celgene has profited more than $38.9 billion from the sale of these two drugs.
In order to prevent generic competition, Celgene allegedly engaged in a series of unlawful tactics to block the market entry of generic versions of Thalomid and Revlimid. Celgene’s anticompetitive conduct includes fraudulently obtaining patents on procedures to ensure the safe use of the two drugs, and engaging in sham litigation against competitors whenever they obtain samples of Thalomid or Revlimid for generic bioequivalence testing purposes.
