1 00:00:00,040 --> 00:00:02,880 Speaker 1: Now it's time for our daily Bloomberg Lab Brief, exploring 2 00:00:03,000 --> 00:00:05,120 Speaker 1: legal issues in the news and the law brief is 3 00:00:05,120 --> 00:00:08,920 Speaker 1: brought to you by the American Arbitration Association. Business disputes 4 00:00:08,920 --> 00:00:13,160 Speaker 1: are inevitable, resolve faster with the American Arbitration Association, the 5 00:00:13,160 --> 00:00:17,040 Speaker 1: global leader in alternative dispute resolution for over ninety years. 6 00:00:17,320 --> 00:00:20,799 Speaker 1: More at a dr dot org. Today Bloomberg Lahos June 7 00:00:20,800 --> 00:00:25,120 Speaker 1: Grosso speaks with Bloomberg Intelligence senior litigation analyst Jennifer Ree 8 00:00:25,160 --> 00:00:28,440 Speaker 1: about why Mylon is facing an antitrust investigation over the 9 00:00:28,560 --> 00:00:32,800 Speaker 1: pricing of its EpiPen jen. So the companies admitted that 10 00:00:32,880 --> 00:00:36,800 Speaker 1: it received a request for information from the FTC. What 11 00:00:36,840 --> 00:00:40,000 Speaker 1: do we know about its investigation? Well, you know, right now, 12 00:00:40,040 --> 00:00:42,400 Speaker 1: we really know very little. And that makes sense because 13 00:00:42,440 --> 00:00:46,000 Speaker 1: these FTC investigations are confidential and in fact that if 14 00:00:46,000 --> 00:00:48,640 Speaker 1: the company hadn't admitted it, we might not know unless 15 00:00:48,680 --> 00:00:51,640 Speaker 1: there was otherwise a leak. But you know, Bloomberg News 16 00:00:51,640 --> 00:00:53,840 Speaker 1: reported on this and they said they had talked to 17 00:00:53,920 --> 00:00:56,480 Speaker 1: some sources that were close to the matter that suspect 18 00:00:56,560 --> 00:00:58,720 Speaker 1: this has to do with them looking at whether they 19 00:00:58,800 --> 00:01:01,800 Speaker 1: engaged in tactics is probably a few years ago to 20 00:01:01,920 --> 00:01:04,560 Speaker 1: keep generic competition off the market so that they would 21 00:01:04,840 --> 00:01:07,640 Speaker 1: continue with their brand monopoly on this drug and be 22 00:01:07,680 --> 00:01:09,480 Speaker 1: able to do what they've done, which has raised the 23 00:01:09,520 --> 00:01:12,800 Speaker 1: prices um And it could be related to a settlement 24 00:01:12,840 --> 00:01:15,840 Speaker 1: they entered with Teva in two thousand twelve. At that time, 25 00:01:15,880 --> 00:01:18,760 Speaker 1: Teva was trying to enter the market with a generic 26 00:01:18,880 --> 00:01:23,680 Speaker 1: version of Mylon's branded EpiPen, and Milon sued them for infringement. 27 00:01:23,760 --> 00:01:26,119 Speaker 1: This is before they entered the market that the hatchwax 28 00:01:26,240 --> 00:01:29,400 Speaker 1: Waxman Act allows companies to do that, and they settled 29 00:01:29,440 --> 00:01:31,440 Speaker 1: the case. It started trial, but in the middle of 30 00:01:31,480 --> 00:01:33,720 Speaker 1: trial the case settled and there was an agreement that 31 00:01:33,760 --> 00:01:37,280 Speaker 1: Teva wouldn't enter with its generic product until sometime closer 32 00:01:37,280 --> 00:01:39,800 Speaker 1: to when the patent was actually going to expire. And 33 00:01:40,040 --> 00:01:43,600 Speaker 1: sometimes what happens in those kinds of settlements is that 34 00:01:44,200 --> 00:01:46,880 Speaker 1: the brand company will actually pay the generic company to 35 00:01:46,920 --> 00:01:48,800 Speaker 1: agree to keep their drug off the market. So in 36 00:01:48,840 --> 00:01:51,280 Speaker 1: a way, it can be seen as splitting the monopoly 37 00:01:51,320 --> 00:01:54,400 Speaker 1: profits that we're going to get if you stay off. Now, 38 00:01:54,520 --> 00:01:59,040 Speaker 1: what about what Milon has been doing with patenting advances 39 00:01:59,080 --> 00:02:02,280 Speaker 1: in the last eight years to the epipan like a 40 00:02:02,320 --> 00:02:06,320 Speaker 1: non removable needle. Does that affect the expiration of the 41 00:02:06,320 --> 00:02:11,120 Speaker 1: original patent? Is that anti competitive? Well, you know, not necessarily. 42 00:02:11,160 --> 00:02:14,079 Speaker 1: And oftentimes this is what the companies will sailor we've 43 00:02:14,120 --> 00:02:16,400 Speaker 1: improved our product and we have new patents on this 44 00:02:16,480 --> 00:02:20,200 Speaker 1: product improvement. All of these changes actually usually are covered 45 00:02:20,200 --> 00:02:23,080 Speaker 1: by new patents that then get listed in the Orange Book. 46 00:02:23,280 --> 00:02:25,720 Speaker 1: And what happens is that the generic that's been chasing 47 00:02:25,720 --> 00:02:28,480 Speaker 1: the older patented product is now kind of left out 48 00:02:28,520 --> 00:02:31,360 Speaker 1: in the cold because this newer product might be what 49 00:02:31,480 --> 00:02:34,919 Speaker 1: the doctors are turning to or what Milon might be marketing. 50 00:02:35,200 --> 00:02:38,000 Speaker 1: But the question is is it really a product improvement 51 00:02:38,080 --> 00:02:40,040 Speaker 1: or is it just a way to maintain the monopoly. 52 00:02:40,080 --> 00:02:43,040 Speaker 1: The the FTC might call this product topping if just 53 00:02:43,120 --> 00:02:45,840 Speaker 1: slight changes are made that aren't really improving the product, 54 00:02:45,880 --> 00:02:47,960 Speaker 1: but are meant to keep that generic off the market. 55 00:02:49,280 --> 00:02:53,440 Speaker 1: That's Bloomberg Intelligence Senior litigation analyst Jennifer Ree speaking with 56 00:02:53,480 --> 00:02:56,079 Speaker 1: Bloomberg Lah host joom Grosso. 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