Pfizer Sues Johnson & Johnson over Remicade Contracts

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This week, Pfizer Inc. (NYSE: PFE) sued Johnson & Johnson (NYSE: JNJ) over J&J’s Remicade contract with health insurers. The lawsuit was filed in U.S. district court in Pennsylvania.

Remicade, an infused treatment for chronic autoimmune disorders, costs around $4,000 per dose, or $26,000 per year. The drug is widely used against rheumatoid arthritis, Crohn's disease and other inflammatory disorders. In 2016, the drug generated U.S. sales of $4.8 billion. According to Pfizer, its rival priced 19% lower than the list price, which were anticompetitive and blocked the sales of new biosimilar by Pfizer.

“To date Pfizer has failed to demonstrate sufficient value to patients, providers, payers and employers,” said Scott White, the President of Janssen Biotech Inc, which is a unit of Johnson & Johnson.

Johnson & Johnson has been selling Remicade for nearly two decades. In April 2016, Pfizer was approved for the biosimilar version of the drug. According to the lawsuit by Pfizer, J&J tried to “suppress that competition and deprive society of those benefits … to maintain its stranglehold,” after Pfizer won approval in 2016.

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