Subject: Ortho Diagnostic Sues Abbott on Blood Tests
Date: Published: 4/23/93 (41 lines)
Source: Wall Street Journal. Copyright Dow Jones & Co. Inc.

    Technology:
    Johnson & Johnson's
    Ortho Diagnostic Sues
    Abbott on Blood Tests

    NEW YORK -- Ortho Diagnostic Systems Inc. accused Abbott
 Laboratories of trying to monopolize the market for tests used by
 blood banks to screen blood supplies for diseases such as AIDS and
 hepatitis.
    Ortho, a unit of drug and health-care products maker Johnson &
 Johnson, made the allegations in a lawsuit filed in federal court
 here.  The lawsuit seeks triple damages under federal antitrust law,
 as well as an injunction prohibiting Abbott from attempting to
 monopolize the market.  According to the lawsuit, the market for
 blood screening tests is about $100 million.
    A spokeswoman for Abbott, which is based in Abbott Park, Ill.,
 declined to comment on the lawsuit, saying the company doesn't
 respond to questions concerning pending litigation.
    Ortho's lawsuit also seeks to undo a contract that Abbott
 recently reached with the Council of Community Blood Centers, a
 national organization whose members collect and test 35% of donated
 blood.  Ortho says the contract, which is scheduled to go into effect
 on June 1, will prevent it from selling to most members of the blood
 council for three years.
    According to the lawsuit, Abbott is the only company that makes
 all five blood tests used to screen the nation's blood supply.
 Abbott controls 70% of the market for four of those tests, and two
 of its tests are the industry standard, according to the lawsuit.
 Ortho said Abbott plans to extend its monopoly by "bundling" its two
 most popular tests with the other three it makes and charging a
 "penalty" to blood banks that buy the other tests from another
 supplier.

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