BIOCRAFT GENERIC CEPHALEXIN ANTI-DUMPING SUIT V. LYPHOMED: ITC RULES

Executive Summary

BIOCRAFT GENERIC CEPHALEXIN ANTI-DUMPING SUIT V. LYPHOMED: ITC RULES that there is evidence of material injury to the domestic cephalexin industry from the import of cephalexin capsules to the U.S. by a four-to-two vote on Dec. 7. The ruling by the International Trade Commission's six commissioners will kick off a full investigation by the Commerce Department, which has been awaiting the ITC preliminary decision. The ITC commissioners made their finding after reviewing a report drawn up by the ITC investigative staff on Biocraft's allegations of material injury resulting from the export of generic cephalexin to the U.S. by the Canadian joint venture LyphoMed/Novopharm ("The Pink Sheet" Dec. 5, p. 13). The report and the conclusions of the Commissioners are slated to be submitted to the Department of Commerce on Dec. 12, according to an ITC staffer. In a Nov. 16 Federal Register notice announcing that it was conducting an investigation of Biocraft's allegations against LyphoMed, the Commerce Department noted that continuation of its investigation is contigent upon ITC's determination of material injury. Commerce said it expects to make a "preliminary determination on or before April 5, 1989." According to ITC, a hearing will be held by the Commission should Commerce rule in favor of Biocraft. ITC initiated its preliminary investigation in response to an Oct. 27 petition from Biocraft. The petition claims that Canadian generic cephalexin capsule exporters have been "dumping" cephalexin on the U.S. market at "less than fair value" in order take customers away from domestic generic manufacturers. The filing also claims the "dumping" has resulted in a loss of profits for Biocraft because it has had to compete on price with Lyphomed ("The Pink Sheet" Nov. 14, T&G-6)