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Lawsuit claims Cephalon "bought off" generic makers

Pharma Compliance Alert, February 20, 2008

Cephalon may have been so eager to protect its top selling drug, Provigil, that it illegally delayed generic competition, according to a Federal Trade Commission (FTC) press release.

In a civil complaint filed in the U.S. District Court in Washington, DC, the FTC alleged Cephalon made payments totaled slightly more than $200 million to four generic manufacturers so they would delay the drug's entry into the market until 2012.

This isn't the first time Cephalon faced government scrutiny. Last year, the company reach a $425 million settlement with the Department of Justice over its marketing practices.

The FTC is seeking:

• A permanent injunction against Cephalon that would allow generic Provigil entry before 2012
• A final court judgment against Cephalon declaring that its course of conduct, including its agreements with the four generic manufacturers, violates Section 5(a) of the FTC Act and barring Cephalon from engaging in similar or related conduct in the future

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