FTC challenges abuse of FDA procedures to block drug competition

Following a four to zero vote for the action, the US Federal Trade Commission (FTC) has filed an amicus brief with the US District Court for the District of Delaware in the case of US drugmaker Jazz Pharmaceuticals (Nasdaq: JAZZ) versus Ireland-incorporated Avadel Pharmaceuticals (Nasdaq: AVDL).

Jazz shares saw an initial fall of 5% following the announcement, but almost recovered by close of trading on Friday, while Avadel stock leapt 28.5% to $7.97.

The Brief highlights the significant harm to consumers when a brand company improperly lists a patent on a distribution system in the Food and Drug Administration’s “Orange Book” of approved drugs and thereby blocks the introduction of lower-cost generic medications or other follow-on competition.