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In a striking courtroom drama unfolding in New Jersey federal court, Sandoz Inc. has accused biopharmaceutical giant United Therapeutics Corp. of adding "poison" to the market, effectively thwarting the sales of Sandoz's generic hypertension drug. The two companies are entrenched in a legal battle, with more than $160 million in damages at stake, according to statements made during the opening of a bench trial on Monday.

Sandoz Says Biopharma Biz Added 'Poison' To Market: The Core of the Conflict

The trial, overseen by U.S. District Judge Brian R. Martinotti, aims to ascertain the financial damages incurred by Sandoz after United Therapeutics was found to have violated several laws, including the Sherman Antitrust Act. The conflict centers around the generic drug treprostinil, used to treat pulmonary arterial hypertension, which Sandoz introduced to the market. However, United Therapeutics, the manufacturer of the branded counterpart Remodulin, has been accused of blocking access to necessary delivery devices, compelling patients to rely on a less effective intravenous method.

"Your Honor, we are here to talk about damages," stated Matthew D. Kent, attorney for Sandoz, during the opening statements. He vividly described the situation as "poison" infiltrating the market, influencing both patient access and physician prescription habits.

Sandoz Says Biopharma Biz Added 'Poison' To Market: Market Poison and its Aftermath

Kent argued that this market poisoning continued to deter doctors from prescribing the generic option, with the adverse effects still permeating the industry. According to Kent, the damages owed to Sandoz tally up to a substantial $168.4 million.

In contrast, Edward J. Bennett, representing United Therapeutics, attributed the poor uptake of Sandoz's generic to ineffective marketing and administrative errors. He downplayed the alleged damages, suggesting a mere $8 million would be sufficient.

Sandoz Says Biopharma Biz Added 'Poison' To Market: A History of Legal Struggles

This legal confrontation is not the first between Sandoz and United Therapeutics. They previously clashed in 2015 over patent issues, which was resolved when Sandoz obtained a nonexclusive license to sell its generic version. However, the contention reignited as United Therapeutics allegedly employed new strategies to suppress the generic drug's market presence, including restricting the distribution of essential drug delivery pumps through specialty pharmacies unless paired with their branded drug.

As the trial progresses, the legal teams—Sandoz represented by Alston & Bird LLP and Quinn Emanuel Urquhart & Sullivan LLP, and United Therapeutics by Williams & Connolly LLP and Blank Rome LLP—will continue to unveil the complexities of this significant case, which could have far-reaching implications for the pharmaceutical industry.

The case, officially titled Sandoz Inc. et al. v. United Therapeutics Corp. et al., is documented under case number 2:19-cv-10170 in the U.S. District Court for the District of New Jersey.