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LITIGATION
Bristol-Myers Squibb has reached tentative agreements totaling $670 million that it says will mostly settle all antitrust litigation surrounding two products: its antianxiety drug BuSpar and its anticancer agent Taxol. In a statement, the company says it stands behind what it believes were entirely lawful actions taken to protect its intellectual property. However, it considers it prudent to settle and "put the uncertainty and risk of this litigation" to rest. Bristol-Myers will pay $535 million to resolve claims brought by direct and indirect purchasers of BuSpar, competitors, and states' attorneys general. In late 2001, 35 states sued the company, alleging it had illegally blocked lower cost generic versions of the drug. The generic versions were first sold in mid-2001 and have since eaten substantially into Bristol-Myers' peak annual sales for BuSpar of just over $700 million. The company will also pay $135 million to settle similar lawsuits related to Taxol. In mid-2002, 39 states, led by Ohio Attorney General Betty D. Montgomery, filed suit. The lawsuit alleged that Bristol-Myers fraudulently obtained patents that it then used to impede generics producers. Generic paclitaxel became available in late 2000, the year that Taxol sales peaked at $1.6 billion. Montgomery says the states, which together could get up to $155 million, are pleased to be moving toward final settlements. "Now we are working on injunctive relief to ensure that the company doesn't engage in this activity again," she says. On Jan. 7, the day the settlements were announced, Sens. Charles E. Schumer (D-N.Y.), John McCain (R-Ariz.), and 17 others reintroduced legislation to overhaul generic drug laws. The Senate passed similar legislation last summer (C&EN, Aug. 5, 2002, page 11), but it subsequently stalled in the House.
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