U.S. Probes Zeneca-Barr Deal on Tamoxifen

Zeneca Group and Barr Laboratories Inc. are under investigation by the Justice Department over an agreement that makes them the exclusive U.S. sellers of a popular breast cancer drug. The 1993 accord settled a patent infringement suit filed by Zeneca, the world’s second-largest maker of cancer drugs, against generic drug maker Barr. The lawsuit could have invalidated the Zeneca patent, a step that would have made the company vulnerable to competition from other generic drug makers. Antitrust enforcers are “looking at the possibility of anti-competitive practices involving intellectual property rights relating to tamoxifen,” Justice Department spokeswoman Gina Talamona said. The companies reached their settlement after Barr won a trial court ruling declaring the Zeneca patent invalid. Investigators want to know whether the settlement, which wiped out the judgment and made Barr the exclusive U.S. generic distributor of tamoxifen, effectively prevented other companies from taking advantage of the ruling. American depositary receipts of London-based Zeneca rose 38 cents to close at $44.88 on the New York Stock Exchange. Pomona, N.Y.-based Barr’s shares rose $1.56 to $48, also on the NYSE.