Sandoz compelled to take legal action to protect supply continuity to important medicine
Jul 22, 2020
July 22, 2020
Sandoz is committed to helping people around the world access high-quality, affordable medicines and has developed a network of third-party suppliers to support this effort. When its ability to deliver on this commitment is threatened by improper business practices, Sandoz will take legal action.
On July 20, 2020, Sandoz Inc. filed a complaint in United States District Court for the Eastern District of Pennsylvania against pharmaceutical company Lannett Company, Inc., alleging Lannett has interfered with a Sandoz long-standing exclusive right to market and distribute the authorized generic of levothyroxine sodium tablets, Levothyroxine, manufactured by Cediprof, Inc. This action asserts claims for tortious interference with contract and with business relationships that arise from Lannett’s wrongful conduct in the marketplace. We are also seeking a temporary restraining order (TRO) that would prevent Lannett from interfering with our customer relationships and violating our exclusive distribution rights while this litigation proceeds.
At the same time, Sandoz filed a motion for a TRO in United States District Court for the Southern District of New York, seeking to keep the exclusive supply and distribution arrangement between Sandoz and Cediprof in place while Sandoz’s claims that Cediprof breached the parties’ contract are resolved in arbitration.
Despite Sandoz’s attempts to resolve these disputes through good-faith negotiation with Cediprof and Lannett, we were left with no option but to take legal action when Lannett and Cediprof publicly announced the transfer of the levothyroxine sodium tablet rights to Lannett on July 16, 2020. This move could harm Sandoz and its customers, causing supply disruptions, and negatively impacting patient treatment for a narrow therapeutic index drug. Sandoz brought these actions to protect its customer relationships and its contractual right to be the exclusive distributor of Cediprof’s Levothyroxine through 2022.
Levothyroxine sodium tablets is indicated for Hypothyroidism, as replacement therapy in primary (thyroidal), secondary (pituitary) and tertiary (hypothalamic) congenital or acquired hypothyroidism, and Pituitary Thyrotropin (Thyroid-Stimulating Hormone, TSH) Suppression, as an adjunct to surgery and radioiodine therapy in the management of thyrotropin-dependent well-differentiated thyroid cancer.
We expect decisions from both courts on the TRO applications within a week.