Device Maker Gets Funding; PacifiCare Unit Expands Network
A few months ago, the Business Journal examined the issue of what drug makers could expect in the way of intellectual property fights and litigation.
The story dealt mainly with looming patent protection battles between brand name and generic makers. But pharmaceutical companies also are tackling other matters in court, such as advertising and trade-related issues.
Watson Pharmaceuticals Inc., just over the line in Corona, is now defending a federal lawsuit filed by Abbott Laboratories Inc. of suburban Chicago. In its complaint, filed earlier this month, Abbott alleges Watson is conducting “an orchestrated campaign of fear and confusion” over Synthroid, Abbott’s prescription medication for treating underactive thyroid glands.
Rob Funsten, Watson’s general counsel, told Reuters that he couldn’t comment on specific allegations. But, he said, based on what he saw in Abbott’s news release, “the allegations are completely without merit.”
Watson markets and distributes Unithroid, a Synthroid rival that was launched in the U.S. last December.
Abbott said it was asking for an injunction to “immediately stop Watson’s false advertising and deceptive trade practices” regarding Synthroid, whose clinical name is levothyroxine sodium. Among other things, Abbott alleges that Watson has falsely stated that Synthroid will be taken off the market in August and that Abbott failed to comply with a 1997 Food and Drug Administration notice requiring all oral forms of levothyroxine sold in the U.S. to be approved by the FDA.
Abbott said it was “particularly disturbed” about what it alleges was “misleading information” spread by Watson about the switching of prescription thyroid drugs, according to Dr. David Pizzuti, its vice president of global medical affairs.
“Switching prescription thyroid drugs is not as simple as merely matching dosage,” Pizzuti said.
“Because of the medical implications of switching, it is extremely irresponsible for Watson to falsely generate concerns about the continued availability of Synthroid,” Pizzuti said.
Synthroid, introduced in 1955, is considered among the most-prescribed drugs in the U.S.
Defibrillator Maker Raises $840K
HeartSine Technologies Inc., a Mission Viejo-based medical device maker, said it’s raised $840,000 in second-round financing from Crescent Capital Venture Fund and the University Challenge Fund. The funds are expected to be used for product development and securing regulatory approvals.
Crescent Capital led the round with $548,000, said Drew Hoffman, HeartSine’s chief executive. Hoffman said he expected the funding to last around a year, citing HeartSine’s $33,000 monthly burn rate. HeartSine is valued at $2.8 million, post-funding.
HeartSine produces defibrillation machines that are designed to enable people with limited medical training to resuscitate heart attack victims. The company said it plans to launch its product in January.
HeartSine also maintains research, development and manufacturing capacities in Belfast, Northern Ireland. Before nabbing its new round, the company was funded by individuals.
PacifiCare Unit Boosts Network
PacifiCare Dental and Vision, Anaheim, said it signed a contract with Medical Eye Services Inc., Long Beach. PacifiCare Dental and Vision is a subsidiary of PacifiCare Health Systems Inc., Santa Ana.
The pact will offer PacifiCare Dental and Vision members access to more than 5,100 vision care providers, including ophthalmologists, opticians and optometrists across California, said James Stumpfel, PacifiCare Dental and Vision president and chief executive. Stumpfel also noted that while PacifiCare’s new network is almost triple the previous size, customers also look at other factors in selecting vision healthcare plans, including providers’ credentials and background and their location.
Medical Eye Services is a third-party administration company aligned with the Eye Care Network, a preferred provider organization that’s existed for more than 25 years.
Bits and Pieces:
Bristol-Myers Squibb Co., New York, recently moved its Orange County office from Irvine to 10,400 square feet of space at Aliso Viejo Town Center Corporate Park. The Bristol-Myers’ five-year lease is valued at $1 million. Bristol-Myers’ new Aliso Viejo office will serve as the multinational drug and healthcare product company’s Western regional sales office Nationwide Health Properties Inc., Newport Beach, said it entered into an agreement with an unidentified institutional investor that would make at least $130 million for new investments in the long-term care field. Nationwide said the joint venture would consist of equity contributions and debt not to exceed 50% of the entity’s capitalization Grossman Burn Services of Orange County is building a 6,000 square-foot facility on the seventh floor of Western Medical Center-Santa Ana. The center, run by Dr. A. Richard Grossman, will begin taking patients early next year Dr. Keith Wilson, president and chief executive of Talbert Medical Group, Costa Mesa, received a 2001 physician executive “award of excellence” from Modern Physician magazine. Under Wilson’s leadership, Talbert has grown to eight medical sites in Orange and Los Angeles counties serving more than 80,000 patients University of California, Irvine Extension is offering several new medical product development courses beginning in July at UCI’s learning center in Orange. For more information, call (949) 824-5380.
