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A building belonging to Teva Pharmaceuticals, in Jerusalem. REUTERS Baz Ratner

Lead counsel appointed in Nexium pay-for-delay case

1/17/2013 COMMENTS (0)

By Andrew Longstreth

NEW YORK, Jan 17 (Reuters) - Four lawyers have been appointed as interim lead counsel in a class action challenging agreements to delay market entry of generic versions of AstraZeneca's blockbuster heartburn drug Nexium.

In an order on Wednesday, U.S. District Judge William Young in Boston named as interim co-lead counsel Steve Shadowen of Hilliard & Shadowen; Jayne Goldstein of Shepherd, Finkelman, Miller, & Shah; J. Douglas Richards of Cohen Milstein Sellers & Toll; and Kenneth Wexler of Wexler Wallace.

Those attorneys will lead the case against AstraZeneca and generic drug manufacturers Ranbaxy Pharmaceuticals Inc, Teva Pharmaceuticals Industries Ltd and Dr. Reddy's Laboratories Ltd. Several suits have been filed alleging that AstraZenca paid the other drug manufacturers to delay introduction of their generic version of Nexium.

In exchange for the payments, the generics agreed to drop their challenges of AstraZenca's Nexium patents. The settlements violated antitrust laws, according to the plaintiffs.

The lead counsel appointed on Wednesday will represent a class of indirect purchasers of Nexium who claim they paid more for the drug due to the agreement to keep out generic versions.

Young also appointed an executive committee that will assist the lead counsel. The members of that committee include Daniel Girard of Girard Gibbs; Brian Penny of Goldman Scarlato Karon & Penny; Joseph Guglielmo of Scott and Scott; Michael Buchman of Pomerantz Grossman Hufford Dahlstrom & Gross; Thomas Shapiro of Shapiro Haber & Urmy; and James Dugan of The Dugan Law Firm.

The litigation involving Nexium could turn on the outcome of a case now before the U.S. Supreme Court. Last year the court agreed to hear an appeal by the Federal Trade Commission, which had challenged payments made by Solvay Pharmaceuticals Inc, now owned by Abbott Laboratories, to stop generic versions of AndroGel, a treatment for the underproduction of testosterone, until 2015.

The question before the Supreme Court is whether pay-for-delay deals should be presumed to violate antitrust laws. Oral argument has been scheduled for March 25.

The case is In re Nexium (Esomeprazole) Antitrust Litigation, U.S. District Court, District of Massachusetts, No. 12-md-2409.

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