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SmithKline to Pay $65 Million to Settle Paxil Antitrust Case

February 5, 2005
SmithKline Beecham has agreed to pay $65 million to settle a class action suit that claimed it gouged consumers taking Paxil, an anti-depressant. The proposed settlement awaits approval by U.S. District Judge John Padova.

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In the suit, lawyers for consumers argued that the drugmaker filed a series of "sham" patent suits to block introduction of generic versions of the drug. Each time SmithKline filed a patent infringement suit, it delayed the introduction of generics by 30 months, testimony indicated.

In the suit,lawyers charged that SmithKline filed the sham suits against Apotex Inc. and TorPharm Inc., both of Weston, Ontario, soon after the generic manufacturers notified SmithKline that they were seeking approval from the Food & Drug Administration.

The suit followed news reports that the Federal Trade Commission was investigating SmithKline for possible antitrust violations. But the FTC investigation was later closed without any government action against SmithKline.

The stakes are high in the case. Paxil is the third-best-selling drug in the burgeoning category of anti-depressants that affect the "re-uptake" of serotonin, a neurotransmitter. With annual sales of $1.4 billion in 1999, Paxil was outsold only by Prozac, made by Eli Lilly, and Zoloft, made by Pfizer.

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