Biotech Values

[bladerunner1717]

Thomas,

I understand the difference in the lawsuits very well. The point I didn't make very clearly, if at all, is that oftentimes court decisions in one case can have profound effects on an Industry, even though it may not have a direct bearing on other lawsuits in that Industry or seemingly only a tangential relationship to issues affecting that Industry. (I don't have the time to give specific examples. And the examples wouldn't convince you anyway. But take my word that it can happen.) So my concern would be a complete hypothetical situation, whereby, let's say, the District Court in the Wellbutrin trial issues an opinion in which the judge throws out a "bombshell"--District Court judges have been known to do this sort of thing--in which he/she says that the FDA bears some responsibility for the generic drug that did harm to patients AND the standards the FDA is using for generics is not ensuring public safety!! Now that judgment and particularly that kind of reasoning would never stand up in Appellate Court, but that's not the point. The point is that kind of decision would create an uproar in the biotech and pharmaceutical world. Remember, perception is everything in the Market.

Imagine what would happen, if a decision came down like that. All the Bio Biotechs and the Big Pharmas and the Big Generics (and the FDA) would bring in their biggest (and most expensive) lawyers to argue the case at the Appellate level. It would be the biggest legal brouhaha you've ever seen in the biotech/pharmaceutical arena. And it would create great uncertainty in the financial markets regarding these companies.

Now don't everybody get their bloomers in a tizzy over this; it's just a complete hypothetical. But the SNY lawsuit--not to mention the Wellbutrin lawsuit--raises a number of substantial issues. Before all the amateur lawyers--and even non-amateurs--start pretending that they know in advance what the District Court will rule and what its reasoning will be, just remember to always expect the unexpected, especially at the District Court level. (And try reading the lawsuit first: http://freepdfhosting.com/50c17ff521.pdf)


Bladerunner