Amgen hit with $406M verdict over cholesterol drug tactics; jury finds unlawful bundling of Repatha to undercut Regeneron's Praluent, awarding $406M in damages.

Amgen hit with $406M verdict over cholesterol drug tactics; jury finds unlawful bundling of Repatha to undercut Regeneron's Praluent, awarding $406M in damages.

A federal court jury in Delaware has ruled that Amgen Inc. violated antitrust and tort laws by using cross-therapeutic bundled rebates to favor its drug Repatha® over Regeneron's Praluent®. The jury awarded Regeneron Pharmaceuticals $406.8 million in damages, including $135.6 million in compensatory damages and $271.2 million in punitive damages [1].

The court found that Amgen's bundling scheme, which involved leveraging its blockbuster anti-inflammatory drugs Enbrel® and Otezla® to convince pharmacy benefit managers (PBMs) to select Repatha as the exclusive PCSK9 category product, was unlawful under the Clayton Act, the Sherman Act, and various state laws, including the New York State Donnelly Act and the California Cartwright Act [1].

The jury's decision underscores the severity of Amgen's anticompetitive practices, which not only hindered fair competition but also restricted patient access to innovative therapies. Regeneron's leaders expressed gratitude to the jury and emphasized the importance of fair competition in the biotech industry for enhancing patient access to vital treatments [1].

The verdict has significant financial and reputational implications for both companies. Regeneron's financial position is bolstered by the $406.8 million award, which could improve its standing in the industry and with healthcare professionals and patients. Conversely, Amgen faces potential damage to its reputation and further legal scrutiny, which could impact its financial performance and regulatory standing [1].

The case highlights the potential consequences of anticompetitive practices in the pharmaceutical industry and underscores the importance of fair competition in driving innovation and improving patient access to life-changing therapies.

References:
[1] https://www.nasdaq.com/articles/regeneron-pharmaceuticals-celebrates-jury-verdict-against-amgen-antitrust-violations