CSL Pays $64M To Settle Antitrust Suit Over Plasma Pricing

After four years of litigation, CSL has agreed to pay $64 million to settle antitrust lawsuits in which several hospitals claimed the plasma products supplier conspired with a key rival to artificially raise prices and constrict supplies even as patient demand rose. Also settling is the Plasma Protein Therapeutics Association industry trade group. At issue were allegations that CSL, which is based in Australia, used the closely controlled trade group as a cover to hold meetings with Baxter International to discuss pricing plans and market domination. The two manufacturers are the world's largest suppliers of plasma-derivative protein therapies used to treat rare immune-deficiency diseases, coagulation disorders and respiratory diseases. The antitrust litigation also alleged that supply data was falsely reported to the federal government. The settlement, in part, resolves a contentious fracas that has consumed hospitals and regulators over the past several years as the market for plasma-derived protein therapies increasingly came to be dominated by just two companies. However, CSL denies any wrongdoing. We asked Baxter (BAX), the other defendant in the case, about the possibility of a settlement and will update you accordingly. “While we continue to strongly reject any allegation of wrong doing, we have negotiated a settlement of the litigation which we believe is in the best interests of the company and our shareholders,” CSL ceo Paul Perreault says in a statement. “To ...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs