Safeway Inc. v. Abbott Laboratories

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT ABBOTT LABORATORIES’ MOTIONS FOR SUMMARY JUDGMENT ON DIRECT PURCHASERS’ CLAIMS (Docket No. 232) AND ON GSK’S CLAIMS (Docket No. 227)

Defendant Abbott Laboratories moves for summary judgment or, alternatively, summary adjudication on the claims of Direct Purchaser Plaintiffs Safeway, Inc., et al.; Meijer, Inc., et al.; and Rite Aid Corporation, et al. (collectively, Direct Purchasers) and for summary judgment on Plaintiff GlaxoSmithKline’s (GSK) claims. Direct Purchasers and GSK oppose Abbott’s motions. The motions were heard on October 28, 2010. Having considered oral argument and the papers submitted by the parties, the Court GRANTS Abbott’s motions in part and DENIES them in part.

BACKGROUND

I. Abbott’s Pricing of Norvir

Protease inhibitors (Pis) are considered the most potent class of drugs to combat the HIV virus. In 1996, Abbott introduced Norvir as a stand-alone PI with a daily recommended dose of 1,200 milligrams (twelve 100-mg capsules a day), priced at approximately eighteen dollars per day. Norvir is the brand name for a patented compound called ritonavir.

After Norvir’s release, it was discovered that, when used…