Mayo Clinic and Lifepoint Health are suing Bristol Myers Squibb and its subsidiary, Celgene, alleging the companies inflated the price of the cancer drug Revlimid by paying other drugmakers to keep their generic versions off the market, the San Francisco Business Times reported Oct. 16.
The practice, known as "pay-for-delay" or "reverse payments," has faced scrutiny from the Federal Trade Commission and insurance plans, which claim they cause consumers to overpay for medications.
The Oct. 6 lawsuit alleges that Celgene and Bristol Myers Squibb extended their monopoly on Revlimid until at least 2026 through these payment arrangements, even though a key patent for the drug expired in October 2019. Natco Pharma, Teva Pharmaceuticals and Dr. Reddy's Laboratories — the three generic drugmakers that received reverse payments from Celgene and Bristol Myers Squibb — are also listed as defendants in the suit.
Lawyers for Mayo Clinic, based in Rochester, Minn., and Lifepoint Health, based in Brentwood, Tenn., contend that the price for a one-month supply of Revlimid has jumped from $4,515 in 2005 to $24,576 last year. Between 2009 and 2018, Celgene's revenue from Revlimid increased from $1 million to nearly $6.5 billion, the suit alleges.
"For a blockbuster drug like Revlimid, billions of dollars are at stake and there is a significant financial advantage to abuse both the United States patent system and the FDA's regulatory approval process to delay and block generic entry into the market for as long as possible," the suit says.
The lawsuit is seeking injunctive relief and damages.
Bristol Myers Squibb shared the following statement with Becker's: "While we will not comment on the specifics of an ongoing litigation, we believe the allegations are without merit. The company will address the lawsuit's allegations at the appropriate time."