FTC Files Amicus Brief to Protect Consumers from Pharmaceutical Monopolies

The Federal Trade Commission (FTC) filed an amicus brief in an antitrust case alleging that drug manufacturer Johnson & Johnson illegally maintained a monopoly over the drug Stelara. According to the FTC, antitrust law should focus on the impact of anticompetitive conduct and consumer harm rather than proof of a specific intent to harm competition.

Why is the FTC intervening in the Stelara case?

The FTC is seeking to protect American consumers from anticompetitive harm. The Commission’s brief asserts that Supreme Court precedent consistently holds that antitrust law focuses on the effects of conduct.

The brief states that requiring a plaintiff to prove a monopolist specifically intended to create anticompetitive consequences would undermine competition. Such a requirement could impede vigorous antitrust enforcement and harm consumers, according to the FTC.

How did Johnson & Johnson allegedly maintain its monopoly?

CareFirst of Maryland Inc. brought a class action alleging that Johnson & Johnson willfully maintained monopoly power for Stelara (ustekinumab). This drug is used to treat Crohn’s disease, ulcerative colitis, psoriasis, and psoriatic arthritis.

The lawsuit alleges the company maintained this power through the acquisition of Momenta Pharmaceuticals. CareFirst claims Johnson & Johnson then used its patent portfolio to delay or prevent competition.

Expert Insight: Samantha Carter notes that the legal distinction between “intent” and “effect” is critical. If the court requires proof of intent, it creates a higher evidentiary bar for plaintiffs, potentially allowing monopolies to persist as long as they can claim a lack of specific malicious intent. Focusing on the actual effect on the market instead could accelerate the entry of cheaper alternatives.

What could happen next in the antitrust case?

The court’s decision on whether to prioritize the effect of conduct over the intent of the manufacturer may determine the outcome of the class action. A ruling in favor of the FTC’s position could make it easier for plaintiffs to challenge drug monopolies.

Under the leadership of President Donald Trump, the FTC has stated it is focused on promoting competition to make prescription drugs more affordable. Future actions by the Commission may continue to target conduct that delays the availability of competing medications.

Frequently Asked Questions

What conditions is Stelara used to treat?
Stelara (ustekinumab) is used to treat several autoimmune conditions, including psoriasis, psoriatic arthritis, ulcerative colitis, and Crohn’s disease.

What is the FTC’s primary argument in the amicus brief?
The FTC argues that antitrust law focuses on the impact of anticompetitive conduct and the resulting harm to consumers, not on the specific intent to harm competition.

Who filed the original class action lawsuit?
CareFirst of Maryland Inc. brought the class action alleging that Johnson & Johnson illegally maintained its monopoly power.

How do you think antitrust enforcement affects the cost of your prescription medications?