READER POLL: Novo Nordisk, A US Subsidiary And Product Liability

Should a foreign drugmaker be held liable for alleged harm caused by one of its drugs when its US subsidiary was responsible for marketing and distribution?  That is the contentious issue that Novo Nordisk wants the US Supreme Court to decide after an Oregon court ruled the parent company, which is based in Denmark, can be listed as a defendant – along with its US unit - in a product-liability lawsuit. In its filing, Novo Nordisk attorneys argue that Oregon courts do not have jurisdiction over a foreign manufacturer simply because its products are sold in the state. By allowing the lawsuit to proceed against the Danish parent, the drugmaker maintains its rights to due process have been violated and wants the Supreme Court to settle an issue that it says lower courts have interpreted inconsistently. The case began when an Oregon woman and her husband filed a lawsuit over the Activella prescription hormone therapy, which they alleged caused her to develop breast cancer. The couple named both Novo Nordisk Inc., the US subsidiary, and Novo Nordisk A/S, the Danish parent, as defendants that were responsible for the harm she allegedly suffered due to the medication. The Danish parent, however, believes only its US subsidiary should have to mount a defense. Why? The US subsidiary is liable for complying with FDA regulation. At the same time, the parent company “did not sell Activella in Oregon to any Oregon-based distributor (and) does not control the distribution system by whi...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs