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AstraZeneca faces suit from AFL-CIO, Boston-based consumer advocate.

The Boston Globe (Boston, MA)

| October 19, 2004 | COPYRIGHT 2004 The Boston Globe. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Christopher Rowland

Oct. 19--The AFL-CIO and a Boston-based consumer advocacy group sued AstraZeneca yesterday, accusing the drug manufacturer of deceptively selling doctors and patients on the idea that Nexium, the nation's most heavily advertised prescription drug, is an improved purple pill.

The lawsuit filed in Los Angeles alleges that when AstraZeneca faced expiration of its patent on Prilosec in 2001, it launched a concerted effort to protect its anti-heartburn prescription franchise by dressing up the old drug with a new name.

In reality, the suit says, Americans who buy Nexium are getting virtually the same drug as Prilosec, just in a higher dose. AstraZeneca reported $3.3 billion in Nexium sales in 2003, driven by what TNS Media Intelligence/CMR has tracked as $250 million worth of TV and magazine ads annually.

"They flooded doctors' offices with Nexium information and they told doctors it was more powerful. They gave them tons of free samples," said Steve Berman, a lead attorney in the case, which is also being launched in Massachusetts. "They priced the drug below the cost of Prilosec at that point in time, and once people got hooked, they raised the price."

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