Perrigo Wins Unfair Competition Case Against Rexall

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April 13, 2010

Generic drug maker Perrigo Co. won an unfair competition lawsuit brought by Rexall Sundown Inc., in New York federal court.

Rexall Sundown, maker of Osteo Bi-Flex, a joint flexibility supplement that contains glucosamine and chondroitin filed suit in the U.S. Eastern District Court of New York, charging Perrigo with false advertising and unfair competition related to a note on the packaging of its generic version of a joint flexibility supplement.

Perrigo’s Glucosamine Chondroitin Complex double strength, bears a note inviting consumers to “Compare to Osteo Bi-Flex Glucosamine Chondroitin MSM with Joint Shield Ingredients.” Rexall claimed sales of Ostel Bi-Flex were hurt by the claim, that its trademark had been violated and it sought triple damages on any profit Perrigo made from its generic compound sales.

A jury unanimously found that Perrigo’s statement used on its store brand packaging, is not false and misleading and does not violate trademark law, Perrigo executives said in a statement.

“This verdict is an important victory for store brands, U.S. retailers and consumers,” Perrigo Chairman and CEO Joseph C. Papa said in a company statement. “The jury verdict confirms that statements on our wholesalers’ and retailers’ packaging, inviting consumers to compare store brand products to the higher-priced national brand products are fair and legal. This kind of statement helps consumers to identify store brand products they want and helps them save…”

Perrigo is the world's largest manufacturer of OTC pharmaceutical products for the store brand market.

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