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Thursday, March 25, 2004

Drug maker sues over P&G generic



By Cliff Peale
The Cincinnati Enquirer

A Pittsburgh drug maker has sued Procter & Gamble Co. and one of its partners for the exclusive right to market a generic version of P&G's Macrobid anti-infective drug.

Mylan Laboratories Inc. claims in the lawsuit that it applied first for the certification with the U.S. Food and Drug Administration and should have a 180-day exclusive period. It also charges that P&G's "authorized generic" agreement with Watson Pharmaceuticals Inc. misleads consumers.

Macrobid is used to treat urinary tract infections. It posted sales of about $158 million last year. This is the first generic competition for Macrobid.

P&G called the lawsuit "without merit."

"We believe this agreement will result in more consumer choices and is, therefore, in consumers' best interests," a spokesman said. "We intend to proceed with this arrangement."

Both Mylan and Watson issued news releases Wednesday saying they would start selling generic versions of Macrobid - Mylan through FDA approval and Watson through a supply agreement with P&G. P&G will make the product for Watson and receive a share of profits.

Mylan's target is broader than just P&G, seeking to overturn the practice of brand companies authorizing generics.

"Consumers and third-party payors who are not aware of this practice and buy the branded product at the branded price are paying more than they should," Mylan CEO Robert Coury said in a statement.

E-mail cpeale@enquirer.com




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