A blog by Robert Dukes, 2L
November 1, 2009
Hello, everyone. This is my initial blog for the fall 2009 semester. I know that as law students we are very busy reading cases for class and writing legal memos on a range of topics. My goal for this blog is to hopefully keep you updated on current legal issues and practice areas locally.
Some recent developments for the last two weeks include a lawsuit against a Marietta based pharmaceutical company and an analysis of Chapter 7 bankruptcy filings in the U.S. Bankruptcy Court, Northern District of Georgia.
Solvay Pharmaceuticals being sued[1]
CVS Pharmacy Inc., WalGreen Co., Rite Aid Corp. and others have filed suit against Solvay Pharmaceuticals, Watson Pharmaceutical Cos. Inc., and Paddock Laboratories Inc. alleging that Solvay conspired with the generic makers to monopolize the market for the Androgel product. Androgel is a product designed for men with low testosterone levels. Solvay has the rights to the Androgel product whose patent is running out in terms of exclusive rights in America.
There is potentially a large amount of money at stake. It costs around $800 million for a company to create a new drug and bring it to market. It only costs between $5 to $10 million for a generic manufacturer to bring the drug to market. From an economic viewpoint, if it costs less for a company to produce a drug because the company did not have to guide it through the approval process with the Food and Drug Administration, then the cost in savings should be passed on to the consumer. The plaintiffs in the case are upset that they cannot offer a cheaper price version of the Androgel in their respective stores.
The plaintiffs claim that Solvay agreed to pay the generic defendants millions of dollars and provide other forms of compensation in exchange for the generic manufacturers not to sell their respective generic versions of Androgel. It may be difficult for the plaintiffs to show that the agreement restrained the natural forces of competition on the market. This case's development will be interesting to watch because prosecuting reverse payment settlement agreements are seen to be difficult due to conflicting patent and antitrust laws.
If you have an interest in patent law or antitrust law, this would be a case to watch. Hopefully, this case will be in the Northern District of Georgia Federal Court soon.
Chapter 7 bankruptcy filings have a wave of increases from 2008 to 2009 in the Northern District of Georgia[2]
One common theme that we have learned from this recession is that when there is economic turmoil the number of bankruptcy filings goes up. The interesting question is by how much and what type (personal versus business)?
According to new data disseminated by the U.S. Bankruptcy Court, Northern District of Georgia, through September, Chapter 7 liquidations in North Georgia are already 12.5 percent ahead of full-year 2008 figures. At the end of September, 23,345 Chapter 7 filings had been made in North Georgia, compared with 20,745 for all of 2008. Chapter 7 is more common for individuals and is usually the last resort for those with few assets and a large amount of debt. Under Chapter 7 liquidations, the assets of the filing party are surrendered to a court trustee and sold off, with the proceeds going to creditors to forgive most unsecured debts. Our very own Professor Jack Williams is quoted in the article and highlights the fact that elevated bankruptcy levels will likely persist for three to five years, and numbers might not reach their peak for three to four more quarters.
Knowing all this information, what is there for a law student to do? There are definitely opportunities out there that can benefit students with of legal experience. Due to the economic downturn, there are a number of opportunities, which include:
- Take a bankruptcy class or any seminar with Professor Jack Williams. Not only will you enjoy the experience you will definitely be learning from one of the best in the business.
- Look for potential law clerk positions with firms that handle bankruptcy cases.
- Volunteer with Consumer Credit Counseling (a non-profit that assists people with financial problems on alternative solutions to bankruptcy).
- Go to the U.S. Bankruptcy Court, Northern District of Georgia. There will be a number of cases for a while and by observing the process you can learn about the procedure of bankruptcy court and see lawyers in action because the cases in the textbooks do not exactly jump off the page with excitement.
[1] Urvasksh Karkaria, FTC, Drugstores Sue Solvay over Delay in Generic AndroGel, Atlanta Business Chronicle, Oct. 23, 2008
[2] J. Scott Trubey, Chapter 7 bankruptcy filings skyrocket, Atlanta Business Chronicle, Oct. 23, 2008.
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