Medford, OR – Oregon Attorney General Dan Rayfield announced a significant settlement with pharmaceutical companies AbbVie and Besins, totaling $9.25 million. The settlement resolves allegations that the companies engaged in anti-competitive practices to maintain a monopoly on testosterone replacement gels, thus keeping prices unnecessarily high for consumers, insurance companies, and Medicaid.
The core of the case centers around the companies’ use of “sham patent litigation” to block generic alternatives to their testosterone gel products. By preventing competition in the marketplace, AbbVie and Besins were accused of artificially inflating prices, ultimately leading to higher costs for both patients and public health programs.
Under the terms of the settlement, the companies will pay $6.2 million in disgorged profits and penalties, in addition to attorney fees. A portion of the funds will be allocated to Oregon Medicaid and to support the state’s consumer protection and antitrust divisions.
Rayfield criticized the pharmaceutical giants for employing “sneaky legal tricks” to stifle competition, calling it a direct attack on individuals struggling to afford their medications. “These are the sneaky legal tricks that pharmaceutical companies will use to keep drug prices high for as long as they can,” Rayfield said in a statement. “It’s unacceptable and a direct attack on people who are just trying to get by.”
This settlement follows a similar federal case in which the U.S. Supreme Court struck down a $448 million remedy. The high court’s decision removed a significant tool for recovering inflated profits, but Oregon remains one of the few states still equipped with the legal framework to pursue such remedies.
The resolution is seen as an important victory in the ongoing battle against inflated drug prices, with Rayfield’s office highlighting the state’s commitment to holding pharmaceutical companies accountable for their pricing strategies.