LILLY KEFZOL MARKETING SUBJECT OF JUSTICE DEPT. ANTITRUST PROBE
LILLY KEFZOL MARKETING SUBJECT OF JUSTICE DEPT. ANTITRUST PROBE that has reached the level of a federal grand jury investigation in Philadelphia, Pa., Lilly reported in a Feb. 12 8-K filing with the Securities and Exchange Commission. In a tersely worded statement, Lilly said that "a federal grand jury in Philadelphia is investigating whether the company's practices in the marketing sale and distribution of cefazolin in the U.S. between Jan. 1, 1980 and June 1, 1985 . . . violate the antitrust laws." The investigation is focusing "particularly" on Lilly's "bids and sales to hospitals, hospital buying groups and agencies of city, county and state governments," Lilly said. The firm concluded the SEC statement by asserting its belief "that its acts and practices in the matters covered by this investigation are and have been lawful and proper." The timing of Lilly's announcement is presumably related to the firm's up-coming purchase of Hybritech. Proxy materials for Hybritech shareholders would probably have disclosed the cefazolin pricing investigation. No other firms have publicly reported being involved in the grand jury investigation. Trade talk indicates that Lilly may not be alone. Two companies market cefazolin in the U.S.: Lilly (Kefzol) and SmithKline (Ancef). Th first generation cephalosporin market has faced increased price pressures recently from the introduction of generic cephalothin in early 1984 and from hospital pharmacies looking to cut costs. Glaxo, Bristol, IMS, and Travenol (in pre-mixed bags) currently market generic cephalothin.
You may also be interested in...
Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011
FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials
Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth