Attorney General's News Release

February 25, 2008

Maker of birth control pill to pay Missouri $200,000 to settle claims it kept generic version off the market, Nixon says

Jefferson City, Mo. — Attorney General Jay Nixon announced today that Missouri will be receiving $200,000 as part of a multi-state $5.9 million settlement of a civil action against the drug company Barr Pharmaceuticals. The lawsuit, joined by 33 other states and the District of Columbia, charged Barr Pharmaceuticals and another pharmaceutical company, Warner Chilcott, with antitrust violations that prevented generic versions of Ovcon, a prescription oral contraceptive, from reaching the marketplace. The Attorneys General settled their lawsuit against Warner Chilcott in 2007 for $5.5 million.

“Consumers have fewer choices and higher prices when competition is hampered,” Nixon said. “Barr and Warner Chilcott both actively prevented that competition – much to the detriment of Missouri’s consumers – and we are satisfied that they will be making some amends for their actions through today’s settlement.”

Nixon sued Barr Pharmaceuticals and Warner Chilcott in November 2005 alleging that Barr accepted $20 million from Warner Chilcott and, in return, did not introduce its generic version of Ovcon into the market in competition against Warner Chilcott. Missouri’s lawsuit, joined by the other states, was filed in federal court; the Federal Trade Commission also filed its own lawsuit against the two companies.

Since 1976, Ovcon has been sold in the United States as a safe and effective oral contraceptive. Warner Chilcott became its exclusive distributor in 2000. Barr filed an application with the U.S. Food and Drug Administration (FDA) in 2001 to allow it to bring a generic version of Ovcon to market.

In early 2003, Barr announced that it planned to have the generic version on the market by the end of that year. In September 2003, Barr and Warner Chilcott entered into a letter of intent for an exclusive licensing agreement. In March 2004, Warner Chilcott paid Barr $1 million for the exclusive option to market Barr’s generic Ovcon products. Under the terms of that agreement, once Barr received FDA approval to market its generic version of Ovcon, Warner Chilcott had 90 days to trigger the option by paying Barr $19 million. Once Warner Chilcott made that payment, Barr would be prevented from bringing a generic version of Ovcon to market.

The FDA approved Barr’s generic Ovcon in April 2004. A month later, Warner Chilcott exercised its option by paying Barr $19 million. The exclusive license agreement was terminated during the course of the States’ litigation. The settlement includes injunctive terms preventing similar agreements in the future.

The $200,000 Missouri will receive will go towards future antitrust and consumer protection law enforcement and to reimburse the state’s costs in bringing the case.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818