Federal Trade Commission v. Lundbeck, Inc.
United States Court of Appeals for the Eighth Circuit
650 F.3d 1236 (2011)
- Written by Nicholas Decoster, JD
Facts
Lundbeck, Inc. (Lundbeck) (defendant) acquired the rights to two drugs, Indocin IV and NeoProfen. At the time, Indocin IV and NeoProfen were the only federally approved drugs for treating patent ductus arteriosus (PDA), a life-threatening heart condition affecting babies. Although both drugs were used to treat PDA, the two drugs did not feature similar compositions and had unique side effects. After acquiring the two drugs, Lundbeck dramatically increased the price of each drug. Both drugs were distributed in hospitals during inpatient care, with neonatologists responsible for determining which drug a patient would receive. Lundbeck stopped promoting Indocin and focused on NeoProfen due to Indocin’s vulnerability to generic competition. The Federal Trade Commission (FTC) (plaintiff) brought a complaint against Lundbeck, alleging that Lundbeck’s purchase of the two drugs constituted an antitrust violation. At trial, Lundbeck provided testimony from seven neonatologists that the choice between Indocin IV and NeoProfen was based solely on medical advantages and disadvantages without regard to cost. The district court determined that the FTC had failed to show that the two drugs competed in the same product market and consequently dismissed for failure to identify a relevant market. The FTC appealed.
Rule of Law
Issue
Holding and Reasoning (Benton, J.)
What to do next…
Here's why 804,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.