In re Nexium

968 F. Supp. 2d 367, 2013 WL 4832176, 2013 U.S. Dist. LEXIS 129696
CourtDistrict Court, D. Massachusetts
DecidedSeptember 11, 2013
DocketCivil Action No. 12-md-02409-WGY
StatusPublished
Cited by42 cases

This text of 968 F. Supp. 2d 367 (In re Nexium) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Nexium, 968 F. Supp. 2d 367, 2013 WL 4832176, 2013 U.S. Dist. LEXIS 129696 (D. Mass. 2013).

Opinion

MEMORANDUM AND ORDER

YOUNG, District Judge.

I. INTRODUCTION

A group of wholesale drug distributors (the “Direct Purchasers”) and health and welfare benefit funds (the “End-Payors” 1) (collectively, the “Plaintiffs”), on behalf of themselves and all others similarly situated, brings this multidistrict, putative class action against AstraZeneca AB, Aktiebolaget Hassle, and AstraZeneca LP (collectively, “AstraZeneca”), Ranbaxy Pharmaceuticals, Inc., Ranbaxy Inc., and Ranbaxy Laboratories Ltd. (collectively, “Ranbaxy”); Teva Pharmaceutical Industries, Ltd. and Teva Pharmaceuticals USA, Inc. (collectively, “Teva”); and Dr. Reddy’s Laboratories Ltd. and Dr. Reddy’s Laboratories, Inc. (collectively, “Dr. Reddy’s”) (collectively, with Ranbaxy and Teva, the “Generic Defendants”) (collectively, with AstraZeneca, the “Defendants”) for alleged violations of state and federal antitrust laws.2 Specifically, the Plaintiffs contend that AstraZeneca and each of the three Generic Defendants entered into reverse payment agreements to keep generic versions of AstraZeneca’s heartburn medication — sold under the brand name Nexium — out of the market, thereby facilitating the extraction of supracompetitive rents by [376]*376virtue of AstraZeneca’s artificially secured monopoly market position.

The Defendants filed five motions to dismiss the Plaintiffs’ claims under Federal Rule of Civil Procedure 12(b)(6) (“Rule 12(b)(6)”). The key issues in these motions can be subdivided into two groups: those relating to the Direct Purchasers and those relating to the End-Payors. With respect to the Direct Purchasers, the Defendants argue that (1) the exclusionary conduct at issue falls within the scope of AstraZeneca’s Nexium-related patents, so no action for antitrust liability may lie; and (2) even if antitrust liability would otherwise attach to the Defendants’ conduct, (a) the doctrine of Noerr-Pennington renders the challenged agreements immune from antitrust scrutiny and (b) the Direct Purchasers’ challenge to the particular agreement between AstraZeneca and Ranbaxy is time-barred under the relevant federal statute of limitations. With respect to the End-Payors, the Defendants argue that (1) the applicable state-specific statutes of limitations bar the End-Payors’ claims with respect to the agreement between AstraZeneca and Ranbaxy; (2) the End-Payors lack standing under both Article III and Federal Rule of Civil Procedure 23 (“Rule 23”) to bring their claims; and (3) the End-Payors’ claims brought under the antitrust laws of eight states (Arizona, Illinois, Mississippi, New York, South Dakota, Tennessee, Utah, and West Virginia) and Puerto Rico and the consumer protection statutes of two states (Massachusetts and North Carolina) are deficient for various reasons.3

At a motion hearing held on April 18, 2013, the Court denied all of the Defendants’ motions and asked for further briefing on the viability of the End-Payors’ Rule 23 standing and claims under Illinois law. Upon reflection, however, the Court acknowledges that it may have acted hastily on some of the matters presented and, therefore, takes the time here to revisit some of its earlier conclusions. Moreover, at the time of the motion hearing, the parties — and, quite frankly, the Court— were waiting with bated breath for the Supreme Court’s decision in Federal Trade Commission v. Actavis, — U.S.—, 133 S.Ct. 2223, 186 L.Ed.2d 343 (2013), which was anticipated to have significant implications for the instant case by resolving fundamental questions concerning the lawfulness of reverse payment agreements. Therefore, although the Court has no reason to modify its judgment with respect to the Defendants’ motion to dismiss the Direct Purchasers’ claims, the recent arrival of Actavis compels the Court to adjust its rationale in light of that opinion. Finally, armed with additional briefing supplied by the parties, the Court is now prepared to rule on the Rule 23 standing and Illinois law issues left unaddressed at the motion hearing.

A. Procedural Posture

The End-Payors filed a consolidated complaint on February 1, 2013, Corrected Consol. Am. Class Action Compl. & Demand Jury Trial (“End-Payors’ Compl.”), ECF No. 114, after the Court was called upon to intercede in a dispute over which of the parties’ attorneys would serve as [377]*377lead class counsel, see In re Nexium, (Esomeprazole) Antitrust Litig., No. 12-md-02409-WGY, 2013 WL 326215 (D.Mass. Jan. 24, 2013). One month later, on March 1, 2013, the Defendants filed their motion to dismiss the End-Payors’ consolidated complaint, Defs.’ Mot. Dismiss Indirect Purchasers’ Consol. Am. Compl., ECF No. 155, together with their supporting memorandum of law, Defs.’ Mem. Supp. Their Mot. Dismiss Indirect Purchasers’ Consol. Am. Compl. (Dkt. No. 114) Pursuant Fed. Rule Civil Procedure 12(b)(6) (“Defs.’ Mot. Dismiss End-Payors”), ECF No. 156. The End-Payors filed their memorandum in opposition to the Defendants’ motion to dismiss on March 22, 2013. End-Payor Class Pis’ Mem. Opp’n Defs.’ Mot. Dismiss (“End-Payor’s Mem. Opp’n”), ECF No. 189. The Defendants filed their reply to the End-Payors’ opposition in further support of their motion on April 5, 2013. Defs.’ Reply Mem. Further Supp. Their Mot. Dismiss Indirect Purchasers’ Consol. Am. Compl. (Dkt. No. 114) Pursuant Fed. Rule Civil Procedure 12(b)(6) (“Defs.’ Reply End-Payors”), ECF No. 208.

The Direct Purchasers, for their part, filed a consolidated complaint with this Court on February 21, 2013. Consol. Am. Compl. & Demand Jury Trial (“Direct Purchasers’ Compl.”), ECF No. 131. The following day, each of the Defendants separately moved to dismiss the Direct Purchasers’ complaint, appending to their respective motions memoranda of law in support. Mot. Dr. Reddy’s Labs. Dismiss Direct Purchasers’ Consol. Am. Compl., ECF No. 132; Mem. Supp. Mot. Dr. Reddy’s Labs. Dismiss Direct Purchasers’ Consol. Am. Compl. (“Dr. Reddy’s Mem.”), ECF No. 133; AstraZeneca Defs.’ Mot. Dismiss Direct Purchasers’ Consol. Am. Compl., ECF No. 134; AstraZeneca Defs.’ Mem. Supp. Their Mot. Dismiss Direct Purchasers’ Consol. Am. Compl. (Dkt. No. 131) Pursuant Fed. Rule Civil Procedure 12(b)(6) (“AstraZeneca’s Mem.”), ECF No. 135; Teva Defs.’ Mot. Dismiss, ECF No. 136; Teva Defs.’ Mem. Supp. Its Mot. Dismiss Direct Purchaser Pis.’ Consol. Am. Compl. (“Teva’s Mem.”), ECF No. 137; Def. Ranbaxy’s Mot. Dismiss Direct Purchasers’ Consol. Am. Compl., ECF No. 138; Def. Ranbaxy’s Mem. Law Supp. Its Mot. Dismiss Direct Purchasers’ Consol. Am. Compl. (“Ranbaxy’s Mem.”), ECF No. 139. On March 15, 2013, the Direct Purchasers filed four memoranda in opposition to each of the Defendants’ motions to dismiss.4 Direct Purchaser Class Pis.’ Opp’n Dr. Reddy’s Mot. Dismiss, ECF No. 167; Direct Purchaser Class Pis.’ Opp’n AstraZeneca’s Mot. Dismiss (“Direct Purchasers’ Opp’n AstraZeneca’s Mot. Dismiss”), ECF No. 168; Direct Purchaser Class Pis.’ Opp’n Teva’s Mot. Dismiss (“Direct Purchasers’ Opp’n Teva’s Mot. Dismiss”), ECF No. 169; Direct Purchaser Class Pis.’ Opp’n Ranbaxy’s Mot. Dismiss (“Direct Purchasers’ Opp’n Ranbaxy’s Mot. Dismiss”), ECF No. 170. AstraZeneca filed a reply in further support of its motion to dismiss on March 29, 2013, AstraZeneca Defs.’ Reply Mem. Further Supp. Mot. Dismiss Direct Purchasers’ Consol. Am. Compl. (Dkt. No.

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Bluebook (online)
968 F. Supp. 2d 367, 2013 WL 4832176, 2013 U.S. Dist. LEXIS 129696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-nexium-mad-2013.