Sanofi has filed an antitrust suit against Mylan alleging 'illegal conduct' to prevent EpiPen competition
Sanofi ADR filed an antitrust lawsuit on Monday against Mylan NV , which makes the EpiPen allergic reaction treatment, claiming that the company engaged in anticompetitive practices to prevent the uptake of Sanofi's then-rival product, Auvi-Q. Mylan allegedly offered "new and unprecedented" discounts off the list price of the EpiPen to prevent various players, including health insurers, from covering the Auvi-Q, according to the lawsuit. Sanofi claimed to have lost "hundreds of millions of dollars in sales" from these actions, along with other costs, and is asking for triple the amount in damages along with legal fees. Mylan spurred public backlash after raising the price of its EpiPen sixfold over several years, which brought attention to its lack of competitors. The Auvi-Q was recalled by Sanofi in 2015 after reports that the devices might deliver inadequate doses of epinephrine. It is is now being sold by privately-held Kaleo Inc., which invented the device, which the Sanofi lawsuit claims is "in part because of the artificial barriers to entry Mylan's conduct erected." Mylan shares were up 1.5% in morning trade on Monday. Shares have surged 4.4% over the last three months, compared with a 3.9% rise in the S&P 500 .
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