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Allergan lawsuit

Botox Price-Fixing Case Proceeds through California Courts

June 27, 2017
A lawsuit that a group of doctors have brought against pharmaceutical company Allergan about the company’s alleged scheme to fix the price of its flagship drug Botox has received a crucial go-ahead from a judge in California federal court. The court granted class-action certification to the group of doctors, a measure that legitimizes the suit.

At issue in the case is whether Allergan colluded with the Korean drugmaker Medytox to prevent the latter company from bringing its rival product, Innotox, to the American drug market. The plaintiffs argue that the agreement between the two major drug manufacturers violated the Sherman Antitrust Act, as well as California’s Cartwright Act and Unfair Competition Law.

The lead plaintiffs in the case as surgeons Adel Tawfilis and Hamid A. Towhidian, who filed a 2015 suit alleging that Allergan and Medytox reached an illicit licensing agreement that had the effect of restraining trade and artificially inflating the price of Botox in the American market.

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