According to the Associated Press, Mylan, the sellers of generic versions of Paxil CR, claims that the courts will not block the sales of generic versions of the drug Paxil.
This is in response to a temporary order in September that blocked Apotex from selling generic versions of the popular antidepressant that is made by GlaxoSmithKline. Now that the U.S. District Court has denied Mylan’s request for a preliminary injunction that permanently blocks other companies from selling the generic versions of Paxil, all Mylan Inc. can do is appeal the decision.
Mylan has had an exclusive agreement with Glaxo since 2008 to sell a generic version of Paxil; its previous lawsuit claimed that Glaxo violated an agreement that guaranteed Mylan primary rights to sell the generic version of the popular antidepressant. Apotex of Canada also was selling the generic version at that time and was Mylan’s major competition on the market. In September, Mylan received a temporary restraining order that blocked the two companies from selling their generics until this Monday’s hearing.
The appeal process comes directly on the heels of the court’s final decision on the original claims made by Mylan against Glaxo. The final decision in the case came down on Oct. 18. Right now Mylan Inc. is the largest U.S.-based generic drug company and the recent decision by the judge will cause a major profit decrease for the company, as generic Paxil was one of Mylan’s big sellers. Since May 2008, the company’s generic version of Paxil has generated hundreds of millions of dollars in sales in the U.S., and hundreds of thousands worldwide.
Amidst all of the difficulties that currently surround the brand name drug Paxil, GlaxoSmithKline, Apotex and Mylan have much to be upset about. Sales of Paxil may drop due to the recent controversies — and with at least three large companies competing in the same market, that is bound to bring about some harsh financial realities for all of the companies involved.