FOR IMMEDIATE RELEASE Media Contact: Andrea Calise ...
FOR IMMEDIATE RELEASE Media Contact: Andrea Calise ...
FOR IMMEDIATE RELEASE Media Contact: Andrea Calise ...
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<strong>FOR</strong> <strong>IMMEDIATE</strong> <strong>RELEASE</strong> <strong>Media</strong> <strong>Contact</strong>:<br />
<strong>Andrea</strong> <strong>Calise</strong>/Micheline Tang<br />
(212) 521-4800<br />
<strong>Andrea</strong>-calise@kekst.com or<br />
Micheline-tang@kekst.com<br />
Court Rules that GE Healthcare Engaged in False Advertising Campaign<br />
against Bracco Diagnostics<br />
GE Healthcare Permanently Enjoined; Ordered to Implement Corrective Actions<br />
and Pay Bracco $11.4 million<br />
Princeton, NJ, March 27, 2009—Bracco Diagnostics Inc. (“Bracco”) announced today<br />
that the United States District Court in Trenton, New Jersey has ruled in favor of Bracco<br />
and against GE Healthcare in one of the most significant false advertising cases to date.<br />
Today’s ruling validates Bracco’s position that GE Healthcare and its predecessor<br />
companies, including Amersham, engaged in a false and misleading advertising and<br />
promotional campaign in an attempt to make false claims that its x-ray contrast agent<br />
iodixanol was superior to Bracco’s market-leading x-ray contrast agent iopamidol.<br />
In its ruling, the Court found GE Healthcare liable for disseminating false messages in<br />
its advertising of iodixanol. The litigation is primarily related to a clinical study that was<br />
published in 2003 by the New England Journal of Medicine (the NEPHRIC study)<br />
comparing two GE Healthcare products: iodixanol and iohexol. While the study only<br />
compared these two GE Healthcare products, GE Healthcare misrepresented the study<br />
in an attempt to claim that Iodixanol was safer than other products that were not<br />
included in the study, including Bracco’s iopamidol. In addition, independent studies,<br />
Bracco studies, and GE Healthcare’s own clinical research demonstrated the<br />
inappropriateness of GE Healthcare’s false claims.<br />
As a result of GE Healthcare’s misconduct, the Court permanently enjoined GE<br />
Healthcare from making further false claims and ordered them to implement a number<br />
of corrective actions, including a press release and advertisements, to ensure that<br />
healthcare providers are correctly informed about the false claims. The Court also<br />
ordered GE Healthcare to pay Bracco $11.4 million in damages.<br />
Carlo Medici, President and CEO of Bracco Diagnostics, stated, “Today’s ruling<br />
highlights the importance of conducting pharmaceutical marketing in an ethically<br />
responsible manner and accurately presenting the results of clinical research to<br />
healthcare providers to ensure the best patient care. We are pleased that the Court has<br />
demanded that GE Healthcare disclose the truth to healthcare professionals, many of<br />
whom have paid a significant premium for iodixanol over many years as a result of false<br />
statements that iodixanol was superior to iopamidol.”
2<br />
In its ruling, the Court stated the following:<br />
“Here, the Court is the fact-finder, and has found that GEH’s [GE Healthcare]<br />
conduct is in violation of the Lanham Act; accordingly, Bracco has demonstrated<br />
actual success of the merits and in turn, irreparable injury.”<br />
“Finally, it is well within the public interest for this Court to enjoin GEH from<br />
disseminating false messages regarding iodixanol.”<br />
“In connection with Bracco’s claim, the Court finds that an injunction and<br />
damages for post and future corrective advertising are appropriate remedies to<br />
prevent future violations of the Lanham Act.”<br />
The Court has ordered GE Healthcare to take a series of corrective actions within 60<br />
days, including, but not limited to:<br />
Be permanently enjoined from making false claims about the comparative safety<br />
profile of iodixanol;<br />
Issue a press release that would also be posted on its website on the Court’s<br />
decision;<br />
Issue corrective advertisements;<br />
Re-train its sales and marketing staff in accordance with the Court’s decision;<br />
When citing studies in its advertising, plainly identify which studies the findings<br />
relate to and refer to the comparator drugs by either their brand or scientific<br />
names.<br />
GE Healthcare had also filed a counterclaim against Bracco, but the Judge granted GE<br />
Healthcare no relief whatsoever.<br />
This litigation was originally filed in December 2003. The 39-day trial, taking place from<br />
May to December of 2007 and including the testimony of seven contrast agent experts,<br />
34 other witnesses and the entry into evidence of over 1400 exhibits, was one of the<br />
most comprehensive examinations of false advertising claims in legal history. Kramer,<br />
Levin, Naftalis & Frankel, LLP served as legal counsel to Bracco.<br />
A copy of the Court’s Order follows this press release.<br />
About Bracco Imaging<br />
Bracco Imaging S.p.A. is one of the world’s leading companies in the diagnostic imaging<br />
business. Bracco Imaging develops, manufactures and markets diagnostic imaging<br />
agents and solutions that meet medical needs and facilitate clinical solutions.<br />
Headquartered in Milan, Italy, Bracco Imaging operates in over 80 markets worldwide,<br />
either directly or indirectly, through subsidiaries, joint ventures, licenses and distribution<br />
partnership agreements.
3<br />
Bracco Imaging is a subsidiary of Bracco S.p.A., the holding company of the Bracco<br />
Group which also markets Ethical and Over The Counter (OTC) pharmaceutical<br />
products in Italy as well as Advanced Medical Technology systems worldwide.<br />
Furthermore, the Bracco Group offers diagnosis services through the Milan-based<br />
Centro Diagnostico Italiano (Italian Diagnostic Center). For more information, visit<br />
www.braccoimaging.com.<br />
# # #<br />
UNITED STATES DISTRICT COURT<br />
DISTRICT OF NEW JERSEY<br />
___________________________________<br />
BRACCO DIAGNOSTICS, INC. :<br />
:<br />
Plaintiff, : Civil Action No. 03-<br />
6025(FLW)<br />
:<br />
v. :<br />
:<br />
AMERSHAM HEALTH, INC., et al., :<br />
: ORDER<br />
Defendants. :<br />
__________________________________<br />
THIS MATTER having been opened to the Court by Plaintiff Bracco Diagnostics, Inc.<br />
(“Bracco”), through its counsel Donald L. Rhoads, Esq., on a four count Complaint<br />
against Defendants Amersham Health Inc., Amersham Health AS, and Amersham PLC<br />
(collectively “GEH”), alleging (1) dissemination of false and misleading advertisements<br />
in violation of Section 43(a) of the Lanham Act; and (2) N.J.S.A. 56:4-1 et seq.; (3)<br />
violations of the common law of unfair competition; and (4) negligent<br />
misrepresentations; it appearing GEH, through its counsel Richard L. DeLucia, Esq.,<br />
filed a Counterclaim against Bracco for alleged false advertising; it appearing that this<br />
Court held a thirty-nine day bench trial in the above-captioned matter; it appearing that<br />
after the trial, the parties submitted proposed findings of fact, conclusions of law,<br />
Daubert motion papers, and post-trial briefs; it appearing, as agreed by the parties, that<br />
this Court would reserve judgment on any pending Daubert motions at trial and rule on<br />
those motions in this Court’s Findings of Fact and Conclusions of Law as appear in this
4<br />
Court’s Opinion; for the reasons stated in the Opinion filed on this date, and for good<br />
cause shown;<br />
IT IS on this 25th day of March, 2009,<br />
ORDERED that following the Daubert analysis, these experts are excluded: (1)<br />
John Russell; (2) Dr. Michael Rappeport; (3) Dr. David Carl Schmittlein; (4) Dr. Marion<br />
Stewart; (5) Dr. Christopher Schmid; and (6) Dr. Eugene P. Ericksen; and it is further<br />
ORDERED that other experts and their testimony were limited, in accordance<br />
with this Opinion; and it is further<br />
ORDERED that GEH is in violation of Section 43(a) of the Lanham Act, having<br />
disseminated false messages in its advertising of Visipaque; and it is further<br />
ORDERED that GEH is permanently enjoined, based on the studies presented at<br />
trial, from claiming:<br />
(1) All low osmolar contrast medium (“LOCM”) produce the same rate of contrast<br />
induced nephropathy (“CIN”);<br />
(2) Visipaque is renally superior to all LOCM;<br />
(3) Visipaque performs better than all LOCM because of lower osmosality and<br />
associated costs<br />
(4) Visipaque causes lower incidence of Major Adverse Cardiac Events (“MACE”)<br />
than all LOCM, although GEH may claim, based on the VICC trial, that Visipaque<br />
causes less MACE than Isovue for patients undergoing percutaneous cardiac<br />
intervention (“PCI”) within the initial 48 hours after the procedure;<br />
(5) Visipaque performs as well or better than LOCM with prophylactics;<br />
(6) Visipaque causes less discomfort than all LOCM;<br />
(7) Visipaque has superior hemodynamic effects over all LOCM;
5<br />
(8) Visipaque has superior patient comfort over all LOCM, although GEH may<br />
claim that Visipaque has comfort superiority with respect to peripheral<br />
angiography procedures; and<br />
(9) Visipaque cost superiority over all LOCM, except in limited circumstances<br />
where GEH associates the cost of treating additional instances of MACE to<br />
higher overall cost; and it is further<br />
ORDERED that GEH’s advertising must be limited to the procedures, contrast<br />
medium (“CM”), patient types, and circumstances that were used in the studies<br />
presented at trial;<br />
ORDERED that when citing studies in its advertising, GEH plainly identify, in<br />
same size print (and not in footnoted material), the CM used in the study and that the<br />
findings of that study are limited to the studied CM; and it is further<br />
ORDERED that GEH issue a press release, including on its website, regarding<br />
this Court’s decision and issue corrective advertisements; and it is further<br />
ORDERED that in comparative advertisements relying upon studies, GEH must<br />
consistently refer to the comparator drugs by either their brand names, e.g., Visipaque<br />
vs. Omnipaque, or their scientific names, e.g., iodixanol vs. iohexol; and it is further<br />
ORDERED that GEH re-train its sales and marketing personnel in accordance<br />
with this Court’s decision; and it is further<br />
ORDERED that GEH shall have 60 days from the date of this Order to comply<br />
with this Court’s order of injunctive relief; and it is further<br />
ORDERED that any future disputes arising between the parties concerning CM<br />
advertisements shall first be submitted to a qualified neutral panel or individual of the<br />
parties’ choice; and it is further<br />
ORDERED that the losing party in the alternative dispute forum shall pay the<br />
costs of the neutral panel or individual; and it is further
6<br />
ORDERED that the panel or individual, in deciding future disputes, shall adhere<br />
to the findings of this Court; and it is further<br />
ORDERED that GEH shall pay Bracco $11,376,500 for Bracco’s corrective<br />
advertising costs incurred as a response to GEH’s wrongful conduct; and it is further<br />
ORDERED that no other damages shall be awarded in the above-captioned<br />
matter; and is further<br />
ORDERED that because Bracco has discontinued its use of advertisements GEH<br />
alleged to be false in its Counterclaim, GEH is not entitled to injunctive relief.<br />
s/ Freda L. Wolfson ]<br />
The Honorable Freda L. Wolfson<br />
United States District Judge