The State of Utah V. APOTEX CORPORATION
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Brigham Young University Law School BYU Law Digital Commons Utah Court of Appeals Briefs 2010 The tS ate of Utah v. APOTEX CORPORATION; BAXTER HEALTHCARE CORPORATION; BOEHRINGERINGELHEIM CORPORATION; MALLINCKRODT INC.; CSL BEHRING; FOREST ABORATORIES, INC.; MORTON GROVE PHARMACEUTICALS, INC.; MUTUAL PHARMACEUTICAL COMPANY, INC.; NOVARTIS PHARMACEUTICALS CORPORATION; OTSUKA AMERICA, INC.; PFIZER, INC.; QUALITEST PHARMACEUTICALS, INC.; SCHERING- PLOUGH CORPORATION; SCHWARZ Recommended Citation Reply Brief, Utah v. Apotex Corporation, No. 20100257 (Utah Court of Appeals, 2010). https://digitalcommons.law.byu.edu/byu_ca3/2258 This Reply Brief is brought to you for free and open access by BYU Law Digital Commons. It has been accepted for inclusion in Utah Court of Appeals Briefs by an authorized administrator of BYU Law Digital Commons. Policies regarding these Utah briefs are available at http://digitalcommons.law.byu.edu/utah_court_briefs/policies.html. Please contact the Repository Manager at [email protected] with questions or feedback. PHARMA USA HOLDINGS, INC; TARO PHARMACEUTICALS USA, INC.; UPSHER- SMITH, INC.; and WYETH, INC. : Reply Brief Utah Court of Appeals Follow this and additional works at: https://digitalcommons.law.byu.edu/byu_ca3 Part of the Law Commons Original Brief Submitted to the Utah Court of Appeals; digitized by the Howard W. Hunter Law Library, J. Reuben Clark Law School, Brigham Young University, Provo, Utah; machine-generated OCR, may contain errors. R. James DeRose III; Locke, Lord, Bissell and Liddell; Counsel for Appellees. Joseph W. Steele; David C. Biggs; Steele and Biggs; Special Assistant Attorneys General; Counsel for Appellant. IN THE SUPREME COURT OF THE STATE OF UTAH THE STATE OF UTAH, Plaintiff/Appellant, vs. APOTEX CORPORATION; BAXTER HEALTHCARE CORPORATION; Supreme Court Case No: 20100257-SC BOEHRINGERINGELHEIM CORPORATION; MALLINCKRODT INC.; CSL BEHRING; FOREST Third District Case No: 080907678 ABORATORIES, INC.; MORTON Judge Tyrone E. Medley GROVE PHARMACEUTICALS, INC.; MUTUAL PHARMACEUTICAL COMPANY, INC.; NOVARTIS PHARMACEUTICALS CORPORATION; OTSUKA AMERICA, INC.; PFIZER, INC.; QUALITEST PHARMACEUTICALS, INC.; SCHERING-PLOUGH CORPORATION; SCHWARZ PHARMA USA HOLDINGS, INC; TARO PHARMACEUTICALS USA, INC.; FILED UPSHER-SMITH, INC.; and UTAH APPELLATE COURT* WYETH, INC. W J S 208 Defendants/Appellees. REPLY BRIEF OF APPELLANT R. James DeRose, III Joseph W. Steele (Bar No. 9697) LOCKE LORD BISSELL & LIDDELL David C. Biggs (Bar No. 0321) 855 Third Avenue, 26th Floor Special Assistant Attorneys General New York, NY 10022 Steele & Biggs, LLC National Counsel for Apotex 5664 South Green Street, Suite 300 Corporation Salt Lake City, UT 84123 IN THE SUPREME COURT OFTH E STATE OF UTAH THE STATE OF UTAH, Plaintiff/Appellant, vs. APOTEX CORPORATION; BAXTER HEALTHCARE CORPORATION; Supreme Court Case No: 20100257-SC BOEHRINGERINGELHEIM CORPORATION; MALLINCKRODT INC.; CSL BEHRING; FOREST Third District Case No: 080907678 ABORATORIES, INC.; MORTON Judge Tyrone E. Medley GROVE PHARMACEUTICALS, INC.; MUTUAL PHARMACEUTICAL COMPANY, INC.; NOVARTIS PHARMACEUTICALS CORPORATION; OTSUKA AMERICA, INC.; PFIZER, INC.; QUALITEST PHARMACEUTICALS, INC.; SCHERING-PLOUGH CORPORATION; SCHWARZ PHARMA USA HOLDINGS, INC; TARO PHARMACEUTICALS USA, INC.; UPSHER-SMITH, INC.; and WYETH, INC. Defendants/Appellees. REPLY BRIEF OF APPELLANT R. James DeRose, III Joseph W. Steele (Bar No. 9697) LOCKE LORD BISSELL & LIDDELL David C. Biggs (Bar No. 0321) 855 Third Avenue, 26th Floor Special Assistant Attorneys General New York, NY 10022 Steele & Biggs, LLC National Counsel for Apotex 5664 South Green Street, Suite 300 Corporation Salt Lake City, UT 84123 Jonathan E. Pickhardt W. Daniel "Dee" Miles, III Andy Berdon Roman A. Shaul Faith E. Gay H. Clay Barnett, III QUINN EMANUEL URQUHART J. Paul Lynn OLIVER & HEDGES LLP Timothy Robert Fielder 51 Madison Avenue, 22nd Floor Special Assistant Attorneys General New York, NY 10010 BEASLEY, ALLEN, CROW, National Counsel for Mutual METHVIN, PORTIS & MILES, P.C. Pharmaceutical Company, Inc. 272 Commerce Street P.O. Box 4160 Montgomery, AL 36103-4160 Scott A. DuBois Robert E. Steed (Bar No. 6036) SNELL&WILMERLLP Assistant Attorney General 15 West South Temple, Suite 1200 Utah Medicaid Fraud Control Unit Salt Lake City, UT 84101 5272 College Drive, Suite 200 Attorneys for Qualitest Salt Lake City, UT 84123-2772 Pharmaceuticals, Inc. Attorneys for Plaintiff/Appellant John T. Montgomery Steven A Kaufman ROPES & GRAY LLP One International Place Boston, MA 02110-2624 National Counsel for Schering-Plough Corporation Amy S. Sorenson SNELL & WlLMER LLP 15 West South Temple, Suite 1200 Salt Lake City UT 84101-1004 Attorneys for Qualitest Pharmaceuticals, Inc. Matthew Campbell WINSTON & STRAWN, LLP 1700 K Street, N.W. Washington, D.C. 20006-3817 Attorneys for Otsuka America, Inc. Erica Smith-Klocek John C. Dodds Kathryn Potalivo MORGAN, LEWIS & BOCKIUS, LLP 1701 Market Street Philadelphia PA 19103 Attorneys for Pfizer, Inc. Phillip S. Ferguson Geoffrey C. Haslam Christensen & Jensen, PC 15 West South Temple, Suite 800 Salt Lake City UT 84101 Attorneys for Baxter Healthcare Corporation Brian P. Miller Derek J. Williams SNOW, CHRISTENSEN & MARTINEAU 10 Exchange Place, Eleventh Floor P.O. Box 45000 Salt Lake City, Utah 84145-5000 Attorneys for Apotex Corporation Matthew A. Steward Robert D. Andreasen CLYDE SNOW SESSIONS & SWENSON One Utah Center, 13th Floor 201 South Main Street Salt Lake City UT 84111-2216 Attorneys for Morton Grove Pharmaceuticals Melanie Vartabedian Wesley D. Felix HOWREY LLP 170 South Main Street, Suite 400 Salt Lake City UT 84101 Attorneys for Boehringer Ingelheim Corporation Bryon J. Benevento SNELL & WlLMER LLP 15 West South Temple, Suite 1200 Gateway Tower West Salt Lake City UT 84101 Attorneys for Novartis Pharmaceuticals Corp Ryan M. Harris JONES WALDO HOLBROOK & MCDONOUGH 170 South Main Street, Suite 1500 Salt Lake City, UT 84101 Attorneys for Forest Laboratories Jordan M. Heinz 300 North LaSalle Chicago, IL 60654 Attorney for Boehringer Ingelheim Corporation Peter W. Billing Timothy K. Clark FABIAN & CLENDENIN, P.C. 215 South State Street, Ste. 1200 Salt Lake City, UT 84151 Attorneys for CSL Behring Johnathan T. Rees HOGAN & HARRISON, LLP Columbia Square, 555 Thirteenth Street, NW Washington, DC 20004 Attorneys for CSL Behring Scott A. Stempel MORGAN LEWIS & BOCKIUS LLP 111 Pennsylvania Avenue, N.W. Washington, D.C. 20004 National Counsel for Pfizer, Inc. Thomas R. Karrenberg Heather M. Sneddon ANDERSON & KARRENBERG 50 West Broadway, Suite 700 Salt Lake City,UT 84101 Local Counsel for Schering-Plough Corporation Matthew Solum KIRKLAND& ELLIS Citigroup Center 153 East 53rd Street New York, NY 10022 Attorneys for Qualitest Pharmaceuticals, Inc. George M. Haley David Parkinson HOLME ROBERTS & OWEN 299 South Main Street, Suite 1800 Salt Lake City, UT 84111 Attorneys for Pfizer, Inc. James P. Ellison HYMAN, PHELPS & MCNAMARA 700 Thirteenth Street, N.W., Suite 1200 Washington, D.C. 20005 Attorneys for Mallinckrodt Inc. and Taro Pharmaceuticals USA, Inc. Merle M. DeLancey, Jr. Jason D. Wallach DICKSTEIN SHAPIRO LLP 1825 Eye Street, NW Washington DC 20006-543 Attorneys for Baxter Healthcare Corporation Richard A. Vazquez SNOW CHRISTENSEN & MARTINEAU 10 Exchange Place, Eleventh Floor P O Box 45000 Salt Lake City, UT 84145 Attorneys for Mallinckrodt Inc. and Taro Pharmaceuticals USA, Inc. John P. Harrington Cecilia M. Romero J. Simon Cantarero HOLLAND & HART 60 East South Temple, Suite 2000 Salt Lake City UT 84111 Attorneys for Mutual Pharmaceutical Company, Inc. Frederick R. Ball David I. Curkovic DUANE MORRIS LLP 190 South LaSalle Street, Suite 3700 Chicago IL 60603 Attorneys for Morton Grove Pharmaceuticals, Inc. Jane W. Parver Saul P. Morgenstern Mark Godler Sam Lonegan KAY SCHOLER LLP 425 Park Avenue New York NY 10022 Attorneys for Novartis Pharmaceuticals Corp Camille N. Johnson SNOW CHRISTENSEN & MARTINEAU 10 Exchange Place, Eleventh Floor P O Box 45000 Salt Lake City UT 84145 Attorneys for Wyeth, Inc. Peter J. Veneglia Cynthia L. Ebbs Martin Barna DORNBUSH SCHAEFFER STRONGIN & VENAGLIA, LLP 747 Third Avenue New York, NY 10017 Attorneys for Forest Laboratories Janna J. Hansen BrienT. O'Connor ROPES & GRAY, LLP One International Place Boston, MA 02110 Attorneys for Schwarz Pharma USA Holdings, Inc. Attorneys for Defendants/Appellees Oral Argument is Requested LIST OF PARTIES TO THE ACTION THE STATE OF UTAH, PLAINTIFF AND APPELLANTS APOTEX CORPORATION; BAXTER HEALTHCARE CORPORATION; BOEHRINGERINGELHEIM CORPORATION; MALLINCKRODT INC.; CSL BEHRING; FOREST ABORATORIES, INC.; MORTON GROVE PHARMACEUTICALS, INC.; MUTUAL PHARMACEUTICAL COMPANY, INC.; NOVARTIS PHARMACEUTICALS CORPORATION; OTSUKA AMERICA, INC.; PFIZER, INC.; QUALITEST PHARMACEUTICALS, INC.; SCHERING-PLOUGH CORPORATION; SCHWARZ PHARMA USA HOLDINGS, INC; TARO PHARMACEUTICALS USA, INC.; UPSHER-SMITH, INC.; and WYETH, INC. i TABLE OF CONTENTS Argument 1 Introduction 1 I. The State Does Not Have, And Cannot Plead, The Details Required By The District Court 4 A. The automation of the Medicaid reimbursement program prevents the State from discovering details of individual reports 5 B. Other state Medicaid actions around the country confirm the widespread pricing scheme engaged in by Defendants 8 II. The State's Claims Satisfy Rule 9(b) 10 A. Defendants' Cited Cases Are Not Applicable To The State's Claims 11 B. Rule 9(b)'s Purpose and Satisfaction in This Case 14 C. The State's Second Amended Complaint Satisfied Rule 9(b)