By Jack Bradley, Staff Writer
On February 14, Verax Biomedical Inc. filed an antitrust suit in federal court against the American Red Cross (“ARC”) alleging that it had used its position within the blood transfusion market to monopolize platelet treatment.[1] Verax also alleged that ARC published false statements about Verax’s tests to poach customers within the industry.[2]
According to the complaint, platelets, or small blood cells, “are a critical life-saving product used to help patients with cancer, blood disorders, critical injuries, and major surgeries.”[3] While incredibly useful, platelets are susceptible to bacterial contamination, which can cause serious injury if not mitigated.[4] The lawsuit arose from competition within the market for platelet bacteria mitigation services. These services are different than platelet treatment itself, as the function of mitigation is only to ensure that the platelet is sterile. Verax claims that ARC “is charging its platelet customers $150 per platelet dose for its pathogen reduction service, while other sellers offer substitute platelet bacteria mitigation services for as little as $25 per dose.”[5]
ARC is the leading provider of platelet treatments within the United States.[6] Prior to 2020, ARC did not offer platelet bacteria mitigation, so purchasers could choose a third party to provide this service. Since ARC began providing bacteria mitigation services, however, “platelet customers—many of whom rely predominantly or entirely on ARC for their supply of life-saving platelets—are being required to buy their platelet bacteria mitigation services only from ARC, rather than from their preferred seller.”[7] If a purchaser would like to contiune to use a third-party seller, they need to find a new platelet provider which may be difficult as ARC is the leading provider and there is currently a shortage.[8] According to the complaint, due to ARC’s position, the shift into the platelet bacteria mitigation services has allowed them to unfairly corner the market, subsequently worsening the “national blood crisis” by destroying a robust network of third parties.[9]
In a statement to Bloomberg Law, an ARC spokesperson asserted that the case is a baseless challenge to its “platelet safety strategy.”[10] ARC further stated “[t]he Red Cross mitigates bacterial risk in platelets and complies with FDA guidance primarily by using pathogen inactivation, a solution that reduces bacterial risk while also mitigating other pathogen threats and safety risks,” and that they believe “pathogen inactivation is critical to maintaining a safe and readily available platelet supply for patients in need.”[11] There is currently no foreseeable resolution to the lawsuit in sight. As of March 9, 2023, ARC has yet to file an answer to the complaint.
[1] Verax Biomedical Inc. v. American National Red Cross, 1:23-cv-10335-PBS (D. Mass. Feb. 2, 2014).
[2] Red Cross hit with antitrust suit for platelet treatment tying. Law360. Retrieved March 9, 2023, from https://www.law360.com/articles/1576596/red-cross-hit-with-antitrust-suit-for-platelet-treatment-tying
[3] Id at 2.
[4] Levy, Jerrold H et al. “Bacterial contamination of platelets for transfusion: strategies for prevention.” Critical care (London, England) vol. 22,1 271. 27 Oct. 2018, doi:10.1186/s13054-018-2212-9
[5] Verax Biomedical Inc. v. American National Red Cross, 1:23-cv-10335-PBS (D. Mass. Feb. 2, 2014).
[6] Red Cross hit with antitrust suit for platelet treatment tying. Law360. Retrieved March 9, 2023, from https://www.law360.com/articles/1576596/red-cross-hit-with-antitrust-suit-for-platelet-treatment-tying
[7] Verax Biomedical Inc. v. American National Red Cross, 1:23-cv-10335-PBS (D. Mass. Feb. 2, 2014).
[8] Red Cross declares first-ever blood crisis amid omicron surge. American Red Cross. (n.d.). Retrieved March 17, 2023, from https://www.redcross.org/about-us/news-and-events/press-release/2022/blood-donors-needed-now-as-omicron-intensifies.html
[9] Leonard, M. (2023, February 15). American Red Cross hit with antitrust suit over Blood Safety (1). Bloomberg Law. Retrieved March 9, 2023, from https://news.bloomberglaw.com/antitrust/american-red-cross-hit-with-antitrust-suit-on-blood-bank-safety
[10] Id.
[11] Id.
