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Oxycontin Maker Purdue Pharma Charged with Acquiring Fraudulent Patents to Extend Drug Monopoly

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Case ID: 3139 | Drugs / Medical | 02/09/2004

A class action has been filed against Purdue Pharma, LP, the manufacturer of the popular painkiller, OxyContin, on the behalf of purchasers who allege that the company fraudulently secured patents on the drug in an effort to stave off cheaper generic competition. The action seeks unspecified compensatory and triple punitive damages.

The action, brought by the Connecticut Citizen Action Group (CCAG) and Health Care For All, piggybacks on a January 5, 2004, federal court ruling invalidating three Purdue OxyContin patents because of misrepresentations Purdue made to the U.S. Patent and Trademark Office. The action mirrors the ruling, alleging that Purdue has been illegally marketing and selling OxyContin since December 1995, when it received approval from the Food and Drug Administration. To win its patents on the drug in the first place, Purdue told the federal patent office that OxyContin was unique because of its effectiveness at very low dosages. Purdue allegedly knew that there was no evidence to support this assertion at the time the company filed for the patents and therefore received exclusive rights to the drug that it did not deserve.

The consumer groups' lawsuit goes on to allege that the drug maker has gone to lengths to maintain its monopoly over the drug by suing a generic company to prevent it from putting a less expensive version of OxyContin on the market. More than 70% of Purdue's $1.8 billion in annual revenue comes from the sale of OxyContin. Because of Purdue's actions, consumers have allegedly paid and continue to pay a highly inflated price for OxyContin -- one they would not have paid if competing or generic versions of the drug were available.

On a related note, a source from the office of Connecticut's Attorney General Richard Blumenthal (D) confirmed January 7 that the state would launch an antitrust investigation into Purdue Pharma's actions over OxyContin and ask other states to join in investigating whether the maker of the powerful painkiller OxyContin blocked the development of cheaper generic alternatives.


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