Abbott sued over Similac packaging
Bristol-Myers Squibb Co. and its Mead Johnson Nutrition unit sued Abbott Laboratories, claiming Similac infant food is sold in packages they developed.
The new Similac SimplePac packages infringe a patent for a "container and scoop arrangement" issued in May 2006, Bristol-Myers and Mead said in the complaint filed Sept. 15 in federal court in Evansville, Indiana. They want cash compensation and an order that Abbott stop selling Similac in the new containers.
The SimplePac, billed as "the most mom-friendly package ever introduced," has a hinged top with a scoop in the lid. Abbott, based in Abbott Park, Illinois, began selling Similac with the new packaging last month.
"Abbott independently designed its new packaging and launched the SimplePac package after conducting extensive research with more than 1,600 mothers to ensure that it meets their needs," spokesman Scott Stoffel said in a telephone interview. He said Abbott doesn't believe the Bristol-Myers patent is infringed or valid.
Last year, Abbott reported that its unit that sells pediatric products, including Similac, had $1.23 billion in sales. It doesn't break out sales of Similac, Stoffel said.
Mead Johnson, based in Evansville, sells the infant and toddler formulas Enfamil and Enfagrow. Formula sales have soared with the expanding world economy, as more people in India and China can afford it. Mead Johnson had $728 million in sales last quarter.
Abbott and Mead Johnson have about the same market share in the U.S., while Nestle SA is the world's largest maker of infant formula, Stoffel said.
New York-based Bristol-Myers, in talks to buy biotechnology company ImClone Systems Inc. for $4.4 billion, this week sought an initial public offering for a 10 percent to 20 percent stake in Mead Johnson to raise cash for acquisitions.
Abbott fell 33 cents to $59.48 at 1:09 p.m. in New York Stock Exchange composite trading. Bristol-Myers fell 17 cents to $21.29.
The case is Bristol-Myers Squibb Co. v. Abbott Laboratories, 08cv134, U.S. District Court for the Southern District of Indiana (Evansville).