GlaxoSmithKline Pays $150 Million to Settle Flonase Antitrust Lawsuit

Published: Jun 21, 2013

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GlaxoSmithKline can pay $150 million to settle claims that it inflated the Flonase prices and delayed the release of a generic nasal spray, a federal judge ruled. American Sales Co. Inc., a Lancaster, N.Y.-based distributor of health and beauty items and general merchandise for U.S. supermarkets, had filed the suit with regional hypermarket chain Meijer Inc. and its distribution company, headquartered in Walker, Mich. Their 2008 class action sought to represent 33 companies that purchase Flonase and its generic counterpart directly from the manufacturers: SmithKline Beecham dba GlaxoSmithKline and Roxane Laboratories. They claimed that GSK improperly delayed the entry of the less expensive, generic fluticasone propionate to rake in multimillion-dollar profits. The delay allegedly let GSK maintain the price of the brand-name drug at above-competitive levels and block unrestricted competition. Extensive discovery, which lasted from late 2008 through mid-2010, included 30 depositions of current and former GSK and Roxane employees and millions of pages of documents, including at least a dozen expert reports and rebuttals.

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