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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

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