Glaxo Group Limited and Glaxo Wellcome, Inc. v. Ranbaxy Pharmaceuticals Inc.
Economic Advice in Litigation
The Situation
Glaxo filed a lawsuit against Ranbaxy, alleging infringement of a patent relating to the anti-infective drug Ceftin, a cephalosporin. Ranbaxy filed an antitrust counterclaim, contending that "solid cephalosporins plus solid amoxicillin/potassium clavulanate" is a relevant antitrust market and that Glaxo had "significant market power" in that "market."
NERA's Role
NERA's analysis showed that Ranbaxy's "relevant market" definition was artificially narrow and lacking in statistical, economic and documentary support; that Glaxo's Ceftin faced competition from a number of antibiotics, including cephalosporins, quinolones, macrolides and amoxicillin/potassium clavulanate; and that in a properly defined relevant market that includes these products, Glaxo's market share was less than 25 percent and the market as a whole was relatively unconcentrated, indicating that Glaxo did not possess market power. A NERA economist testified at a deposition and was scheduled to testify at trial.
The Result
In July 2003, on the ninth day of the trial, Ranbaxy abandoned its antitrust claim.
