Pfizer sues J&J over ‘anticompetitive practices’

Remicade contracts at center of dispute

Pfizer filed a lawsuit against fellow pharmaceutical giant Johnson & Johnson over “anticompetitive practices” in a go-for-the-throat showdown involving the drug industry’s treatment of medicines that are similar to the originals.

In the suit, Pfizer accuses J&J of “exclusionary contracts” and price manipulation “to maintain its monopoly” for a drug used to treat rheumatoid arthritis, Crohn’s disease and other afflictions.

If J&J is found liable, the price of its treatment theoretically could come down amid stiffer competition from Pfizer. That potentially would spell relief for patients, although drug pricing is highly complex and dependent on many factors.

The dispute between Pfizer and J&J centers on the competition between J&J’s Remicade and Pfizer’s biosimilar alternative, Inflectra, which launched in late 2016. Pfizer alleges J&J threatened to withhold rebates from insurers that had determined Inflectra was an acceptable medical alternative to Remicade. The threats, Pfizer said, caused insurers to reverse course.

J&J also offered discounts on Remicade to health care providers in exchange for their pledge not to carry Inflectra, Pfizer alleges.

“These anticompetitive practices are preventing physicians from trying and patients from accessing the biosimilar,” Pfizer said in a statement.

J&J rejected Pfizer’s allegations.

“We are effectively competing on value and price and, to date, Pfizer has failed to demonstrate sufficient value to patients, providers, payers and employers,” Scott White, president of J&J’s Janssen Biotech unit, said in a statement. “Competition is bringing down the overall cost of Remicade and will continue to bring down costs in the future. There is no merit to this lawsuit.”

The accusations are pegged to antitrust laws and 2010’s Biologics Price Competition and Innovation Act, which was aimed at providing an abbreviated route to the market for biosimilar treatments.

After the lawsuit was disclosed Wednesday, Pfizer’s stock rose 1.5% and closed at $35.99 per share. J&J shares fell 1.5% to close at $133.22.

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