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A rival company just sued EpiPen-maker Mylan for alleged anti-competitive marketing

Published by Business Insider on Mon, 24 Apr 2017


In the latest flap over EpiPen, Sanofi filed a lawsuit on Monday alleging that Mylan violated antitrust law by taking several steps to thwart its rival from gaining any traction in the marketplace.Sanofi used to sell Auvi-Q, a different type of auto-injector that provides voice instructions and resembles a deck of cards. Both EpiPen and Auvi-Qprovide life-saving doses of epinephrine to individuals suffering from severe allergic reactions. However, Sanofi voluntarily withdrew its device in October 2015 over problems with dosing and the device is now sold by another company called Kaleo.In its complaint, which was filed in federal court in New Jersey, Sanofi alleges that Mylan offered low prices on EpiPen to insurers in exchange for a promise that insurers would not cover the Auvi-Q.The complaint does not cite specific examples of when or where this practice occurred, and a Sanofi spokesperson declined to provide them.Such an 'exclusive' requirement is fair game in the cutthroat world of pharmaceutical pricing ' but not when the company demanding exclusivity has a monopoly, Sanofi argues.'Pharmaceutical companies with monopolies for a given drug product do not ' and under U.S. antitrust law, cannot ' condition large rebates to block new rival drugs from key access to the market,' the complaint states.If true, this wouldn't be the first time that Mylan offered a low price in exchange for exclusive access to the market. For years, Mylan sold EpiPens directly to schools and offered a deep discount if the schools agreed not to purchase competing products, such as the Auvi-Q.This lawsuit comes on the heels of revelations about another legal technique Mylan used to try and stop competing products from being covered by insurance. Mylan sued West Virginia after the state decided to promote the Auvi-Q, instead of the EpiPen, among its Medicaid patients.Sanofi is demanding a jury trial. Mylan has 21 days to respond.SEE ALSO:Trump press secretary Sean Spicer chews and swallows at least 35 pieces of gum a day ' here's how that might affect his healthJoin the conversation about this storyNOW WATCH: Warner Bros. might have to pay $900 million if it can't prove ghosts are real
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