Beshear: Pharmaceutical Company Penalized For Monopolizing Drug Used to Treat Shingles Virus

Andy Beshear

Kentuckians will have increased opportunities to purchase certain generic drugs, at a lower cost, under an agreement reached by Attorney General Andy Beshear’s office.

Beshear made the announcement today, along with 22 other states, who worked together to reach a 20-year agreement designed to hold pharmaceutical companies Teikoku Seiyaku and Teikoku Pharma USA accountable for their anticompetitive tactics.

Teikoku is accused of illegal conduct due to its participation in an agreement to protect a monopoly on Lidoderm. Lidoderm is the brand-name drug for lidocaine patches, which is widely prescribed for relief of pain associated with a common complication of the shingles virus.

The agreement prohibits Teikoku from paying or incentivizing a generic drug maker to delay entry into the drug market or from researching, developing, manufacturing, marketing or selling any drug product for a period of 20 years.

Teikoku Seiyaku Co. Ltd., is the for-profit parent company of Teikoku Pharma USA, a California-based subsidiary. Through its parent company, Teikoku Pharma is one of the largest pharmaceutical patch manufacturers in the world.

Under the agreement, Teikoku has agreed to cooperate in an ongoing investigation into similar conduct by other drug manufacturers.

Beshear has made protecting Kentucky families from deceptive businesses and unfair business practices one of the top priorities of his office. He said the settlement is proof that those who try to rig the system will be held accountable.

“We work to hold accountable any company that tries to place profits above the people of Kentucky,” Beshear said. “In stopping this company’s pay-for-delay tactics and sanctioning their illegal conduct, we are ensuring Kentucky families are not be taken advantage of and have a choice in their treatment options.”

Over the past two years, Beshear has worked to protect Kentucky families from deceitful actions of many businesses, including pharmaceutical companies like Cephalon, a Johnson & Johnson subsidiary and Mylan Inc.

 Beshear is involved in a multistate lawsuit that alleges widespread collusion among 18 pharmaceutical companies to reduce competition and increase the price of 15 generic drugs.

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