Teva Pharmaceuticals USA Inc. has enlisted Kirkland & Ellis in their legal battle against Amarin Pharma, an Irish based pharmaceutical firm. Teva’s antitrust suit accuses Amarin of dangerously monopolising the market for the principal ingredient in its cardiovascular health drug, Vascepa, thus thwarting competition from generic brands. The specific accusation is that the company has purchased and stored more of the ingredient, icosapent ethyl, than necessary for its operations, thereby keeping its costs high and pricing out competitors.
The suit also alleges that Amarin entered into exclusivity agreements with suppliers to restrict the availability of the key ingredient for its competitors. This would be done under the guise of minimum purchase agreements, with cash payments made to maintain that exclusivity if minimum purchase requirements were not met. Despite the supplier having additional, unused capacity, they were allegedly barred from forging contracts with other companies. This strategic move supposedly enabled Amarin to keep the prices of Vascepa high and maintained their monopolistic control.
Teva filed its antitrust suit in the District of New Jersey, including claims of unfair competition under New Jersey common law and violation of the New Jersey Antitrust Act. The lawsuit also alleges conspiracy and monopolization under the Sherman Act.
Vascepa, a triglyceride-lowering drug used to prevent strokes, recorded revenues of $26 million in 2020. The product is crucial for Amarin as it is the only drug from their portfolio that has received FDA approval, with no other drugs lined up in its pipeline.
Disconcertingly, Teva is not the first to raise such allegations against Amarin, as both Dr. Reddy’s Laboratories and Hikma Pharmaceuticals have lodged similar accusations. This has led to class action suits on behalf of direct and indirect purchasers of Vascepa.
However, it’s crucial to note that Teva, along with Dr. Reddy’s Laboratories and a predecessor of Hikma Pharmaceuticals, previously sought approval for generic versions of Vascepa in 2016. While Amarin settled with Teva in 2018, it took legal action against Dr. Reddy’s Laboratories and Hikma Pharmaceuticals for patent infringement. Their patents were later invalidated in 2020, opening up opportunities for generic versions of Vascepa. Teva did essentially enter the market late in 2022, but due to the ongoing allegations, they struggled to secure sufficient supplies of the key ingredient.
Teva is represented by Devora W. Allon, Gilad Bendheim and James R.P. Hileman of Kirkland & Ellis along with Liza M. Walsh and Jessica K. Formichella of Walsh Pizzi O’Reilly Falanga in Newark. Amarin has not yet responded to the allegations.