Teva Wins HUGE In Propofol Case Credit U.S. Supreme Court
It has been over a year since we told you about a jury verdict in Nevada against Teva Pharmaceuticals a while ago that cost them $500 Million Dollars. The case involved a Nevada resident who contracted Hepatitis C allegedly from contaminated propofol, the anesthetic used to sedate him for a colonoscopy at the clinic of infamous Dr. Desai where 40,000 former patients were potentially exposed to the virus. In a novel approach, the plaintiff sued the drug manufacturer claiming that improper packaging of the drug encouraged re-use of the single use vial, which led to the contamination. The jury agreed and punished the drug makers with a huge judgment.
Easy come, easy go, Teva is off the hook.
On Thursday, the U.S. Supreme Court ruled that Teva Pharmaceutical Industries and other generic drug makers “cannot be sued under state law over allegations that they failed to provide adequate label warnings about potential side effects.” The generic companies had argued that federal law did not allow such lawsuits, since the drugs were approved by the US Food and Drug Administration. They said that federal law required that labeling of generic drugs should be no different than that required for the originally approved brand named drug.
In a statement, Teva said the “ruling reiterates that once the U.S. Food and Drug Administration approves a generic prescription drug as interchangeable to the brand, their labels must also be identical in all material respects. Accordingly, generic companies do not have the ability to influence labeling and related information and should not be held liable for failing to do so.”
Israel based Teva (NASDAQ:TEVA) said the decision was “also a win for American consumers as they bear the ultimate burden of these lawsuits. The decision of the Supreme Court will help to alleviate unnecessary litigation.”