Settlement Offered in Drug Patent Case

The New York Times
October 23, 2004

PORTLAND, Ore., Oct. 22 (AP) - The attorney general of Oregon, Hardy Myers, has proposed a $36 million nationwide settlement among the pharmaceutical manufacturer Organon USA, consumers and states over the antidepressant drug Remeron.

The settlement proposal, filed in federal court in New Jersey on Thursday, resulted from a 10-month investigation by Florida, Oregon and Texas into accusations that Organon tried to prevent consumer access to lower-cost generic versions of the drug.

The attorneys general in the states accused Organon of illegally extending a monopoly by improperly listing a new "combination therapy" patent with the Food and Drug Administration.

In addition, the complaint by the state attorneys general contended that Organon delayed listing the patent with the F.D.A. in another effort to slow the availability of lower-cost generic substitutes, resulting in higher prices.

Organon "abused the regulatory scheme to stifle competition and prevent consumers from having access to low-cost, generic equivalents of this drug," Mr. Myers said on Friday.

Calls to Organon headquarters in Roseland N.J. were not returned. The company is a subsidiary of Akzo Nobel, the world's largest paint manufacturer, based in the Netherlands.

Remeron is Organon's top-selling drug, with annual sales exceeding $400 million, Mr. Myers said.