Co-Promoter Liability


“Co-promotion,” for those not familiar with the term, is a contractual arrangement between two drug companies. The details will differ, but basically one company has a drug but not enough sales people. The second company – the co-promoter – has a larger (or in some other way better situated) sales force, and no competing drug. By signing a co-promotion agreement, the second company (for compensation, of course) puts its sales force to work stirring up interest in - that is, promoting - the other company’s drug.

Such arrangements are fairly frequent in the pharmaceutical business (less so with devices), so we thought we’d take a look at co-promoter liability – that is, whether there’s any support for the independent liability of the non-manufacturing co-promoter. We’re not looking at the other party’s (the manufacturer’s) liability, since that would be determined primarily by the law of agency as applied in a standard product liability case.

Please see full article below for more information.

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Published In: Business Organization Updates, General Business Updates, Products Liability Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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