Plavix Case Study Essay

722 Words3 Pages
Patent Games: Plavix Case Study
Columbia Southern University

Abstract
This case study illustrates the conflict between patent protection and preserving a pure competitive market. Pharmaceutical companies are granted patent rights to newly developed drugs for a limited amount of time. Through legal means they are able to form monopolies and maximize their profits. a parent company can move to delay the release of its generic comparison through legal and illegal measures. In the following case Bristol-Myers Squibb fell victim to their own anti-competitive practices.

Why did Bristol-Myers Squibb and Sanofi-Aventis seek a settlement? Apotex had was near the conclusion of the government mandated 30 month stay brought on by
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Sherman’s strategy
Bristol-Myers Squibb’s deceptive practices were likely to catch up to them. This occurred when they crossed paths with Sherman who led Apotex at the time. After everything settled Sherman acknowledged in an interview that he knew the FTC would reject the proposed agreements made by Bristol-Myers Squibb and Sanofi. He also recognized that their spokesman didn’t realize his offer would cause adverse action against Bristol-Myers Squibb (Baron, 2010). He played to their ignorance and entered the agreement. There is no direct answer to the ethics of Sherman’s strategy. He did not actively participate or even condone Brisol-Myers Squibb’s collusion; in fact he knew the agreement would be rejected. There is no way of truly knowing whether Sherman acted with malice when implementing his strategy.
Should the FTC and the state attorneys general have rejected the agreements? The FTC and state attorney was right in rejecting Brisol-Myers Squibb’s proposed agreements on the grounds that it is an anti-competitive practice. The second agreement would have been rejected as well provided Bristol-Myers Squibb was completely honest with the FTC. Upon submission of the second agreement to the department of justice they affirmed under oath that all agreements were as listed on the document with no side arrangements (Chen, 2011). After the initiation of an investigation conducted by the Federal Bureau of Investigations
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