January 27, 2003

             Lansing, MI – Attorney General Mike Cox announced a proposed settlement today for $80 million involving the popular heart medication Cardizem CD.  The fifty state settlement resolves an antitrust lawsuit filed by the Michigan Attorney General’s office and multiple other state attorneys general against Aventis Pharmaceuticals Inc., Andrx Corporation and affiliated entities. 

            The Michigan Attorney General’s office alleged that Aventis and Andrx illegally agreed that Andrx would stay off the market with a less expensive generic version of the drug Cardizem CD in return for Aventis paying Andrx nearly $90 million. The result, the lawsuit alleged, was higher prices for consumers and governmental agencies. 

            “Today’s settlement should serve as severe warning to big prescription drug companies: If you conspire to keep less expensive medications out of the hands of consumers, you will be caught and you will pay the price,” Cox stated.   “Consumers and government agencies will not be left footing the bill for this type of corporate shenanigans.”

            Under the settlement, Aventis and Andrx must pay $80 million into a fund that will compensate consumers, state agencies, and insurance companies who overpaid for Cardizem CD and its generic equivalents between 1998 and January 2003. 

            “This is an important case not only for consumers of Cardizem CD, but all taxpayers,” said Cox.  “The vigilance and success of this Attorney General’s office will once again mean savings for the state, something desperately needed in these tough budget times.”

            According to the Attorney General’s office, Michigan consumers are estimated to receive approximately $750,000 in reimbursement, and the state will receive approximately $215,000 in reimbursement to state agencies and in excess of $400,000 to cover attorney costs.  Michigan health insurance companies will also be eligible to receive approximately $1 million to cover the higher cost of medications that they covered.

            The Michigan Attorney General’s office filed the Cardizem lawsuit in May 2001 and has acted as co-lead counsel for the states in partnership with the New York Attorney General’s office.  The proposed settlement was filed today with U.S. Federal District Court Judge Nancy Edmunds in Detroit and requires approval from the court to become effective. 

A preliminary approval hearing will take place on Tuesday, January 28, 2002.  If the settlement is approved, Attorney General Mike Cox will implement a claims administration process this summer for consumers who purchased Cardizem CD or its generic equivalent at any time between January of 1998 and January 2003.