29 States Bring Antitrust Suit Against Bristol-Myers

Attorneys general from 29 U.S. states filed a lawsuit Wednesday against Bristol-Myers Squibb Co., alleging the drug giant illegally kept generic versions of its BuSpar anxiety medication off the market, cheating consumers out of millions of dollars.

The suit is part of an ongoing assault on drug makers for alleged abuse of patent laws.

In May, attorneys general from 14 states accused two pharmaceutical firms of blocking introduction of low-cost versions of Cardizem CD, a blood pressure medication. That case, which was filed in federal court in Detroit, is pending.

In filing the suit against Bristol-Myers over BuSpar, the attorneys general are following the lead of trial lawyers who previously sued the drug maker to recover alleged overpayments on behalf of consumers.

California is a plaintiff in the Cardizem case, but not in the BuSpar case.

New York Atty. Gen. Eliot Spitzer said in a complaint filed in federal court in the Southern District of New York that Bristol-Myers violated state and federal antitrust laws by obtaining a new patent extending its exclusive market hold on BuSpar, which generated more than $700 million in sales during the last year.

The complaint also alleged that the company knowingly made false statements to the Food and Drug Administration in an effort to prevent generic drug makers from selling their version of BuSpar, the brand name for buspirone hydrochloride, and extend its “patent monopoly” at a cost of millions of dollars to New York state consumers alone.

A company spokesman was not immediately available to comment on the suit, but Bristol-Myers has denied the allegations in the past.

Shares in Bristol-Myers closed at $50.45, down $3.30, on the New York Stock Exchange. Analysts said Wednesday that the company may reduce 2002 profit forecasts because of generic competition for its Glaucophage diabetes medicine and other drugs.