Boston - First Circuit
1st Circuit Reverses Class Certification in Asacol Antitrust Case
Written October 17, 2018
The US Court of Appeals for the First Circuit on October 15, 2018, reversed a district court order certifying a class of indirect purchasers of the drug Asacol to pursue antitrust claims against Allergan Inc., the drugmaker. Teamsters Union v. Warner Chilcott Ltd., 1st Cir., 10/15/18.
The plaintiffs alleged that Allergan predecessor Warner Chilcott, whose drug Asacol is used for the treatment of inflammatory bowel disease, illegally lengthened its monopoly by coordinating the withdrawal of Asacol from the market with the entry of Delzicol, a new drug with the same active ingredient and dosage. Doing so may have allowed Warner to preclude the possibility of market entry of generic drugs.
The district court certified the class while reasoning that no more than 10 percent of the class were brand-loyal, and therefore had not suffered any injury, however, the First Circuit disagreed, saying that 10 percent in the overall class was too many.
The plaintiffs alleged that Allergan predecessor Warner Chilcott, whose drug Asacol is used for the treatment of inflammatory bowel disease, illegally lengthened its monopoly by coordinating the withdrawal of Asacol from the market with the entry of Delzicol, a new drug with the same active ingredient and dosage. Doing so may have allowed Warner to preclude the possibility of market entry of generic drugs.
The district court certified the class while reasoning that no more than 10 percent of the class were brand-loyal, and therefore had not suffered any injury, however, the First Circuit disagreed, saying that 10 percent in the overall class was too many.