Court Enters Final Order Settling FTC’s Charges Against Drug Company Warner Chilcott
On October 24, 2006, the U.S. District Court entered a final order settling FTC’s charges that the agreement between Warner Chilcott, manufacturer of the prescription birth control pill Ovcon, and Barr Laboratories unlawfully delayed entry of Barr’s generic version of the drug to the market. According to the terms of the settlement, Warner Chilcott must: 1) refrain from entering into agreements with generic pharmaceutical companies in which the generic agrees not to compete with Warner Chilcott and there is either a supply agreement between the parties or Warner Chilcott provides the generic with anything of value and the agreement adversely effects competition; 2) notify the FTC whenever it enters into supply or other agreements with generic pharmaceutical companies; and 3) for three months, take interim steps to preserve the market for the tablet form of Ovcon in order to provide Barr the opportunity to compete with its generic version. The FTC will continue to prosecute its case against Barr.
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