April 18, 2007
Vistakon/Johnson & Johnson Successfully Sues Ciba for Misrepresenting Consumer Opinion
Analysis of:
Jury finds CIBA Vision falsely advertised O2OPTIX contact lenses | www.osnsupersite.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: One company suing another in the eye industry is commonplace these days. Fines are paid and life goes on. Will this lawsuit affect the sales or market share of either of these companies now, or in the long-term? Not significantly, on both accounts.
Analysis: Of course, everyone claims that their contact lenses (contact lens solutions, pharmaceuticals, or whatever) perform the best, and they always have studies to back it up. But, obviously, not everyone can be the 'best'. This is impossible. So where do the studies come from, and how reliable are they, and what has been made up for the sake of trying to grab market share? From this lawsuit, Ciba "deliberately misrepresented consumer opinion". I interpret this as Ciba allegedly lied about their O2Optix lens performing better than J&J's Acuvue lens.
How does this verdict affect J&J and Ciba? J&J won the case, but it was a very weak win. They sued for $7.2 million in damages and received $150,000. To me this says, yes, J&J is in the right, but let's not waste any more time and money on this case. This case has been going on since December 2004! For Ciba, it means they were caught allegedly lying, but got off with a slap on the wrist. More importantly, their reputation has been damaged. As an eye care professional, I know they've fallen a notch or two in my mind. The amount that Ciba's reputation has been damaged really depends on how many Docs or patients read about this lawsuit.
Will this lawsuit make much of a long term impact on the market? No, I don't think there will be a significant impact. We live in a litigious society where lawsuits occur daily. The more lawsuits we hear or read about, the less of an impact they have. A lot of eye care professionals read articles like this and forget them pretty fast. Only because I'm writing this analysis, did I pause to put more thought into the weight of the article. Otherwise, it would have been on its way to being forgotten. Optometrists are creatures of habit. It would take a lot for them to change their routine. I don't prescribe many Ciba lenses, and that's not going to change. If another Doc was successfully prescribing the O2Optix, they would likely continue to do so without missing a beat.
Analysis: Of course, everyone claims that their contact lenses (contact lens solutions, pharmaceuticals, or whatever) perform the best, and they always have studies to back it up. But, obviously, not everyone can be the 'best'. This is impossible. So where do the studies come from, and how reliable are they, and what has been made up for the sake of trying to grab market share? From this lawsuit, Ciba "deliberately misrepresented consumer opinion". I interpret this as Ciba allegedly lied about their O2Optix lens performing better than J&J's Acuvue lens.
How does this verdict affect J&J and Ciba? J&J won the case, but it was a very weak win. They sued for $7.2 million in damages and received $150,000. To me this says, yes, J&J is in the right, but let's not waste any more time and money on this case. This case has been going on since December 2004! For Ciba, it means they were caught allegedly lying, but got off with a slap on the wrist. More importantly, their reputation has been damaged. As an eye care professional, I know they've fallen a notch or two in my mind. The amount that Ciba's reputation has been damaged really depends on how many Docs or patients read about this lawsuit.
Will this lawsuit make much of a long term impact on the market? No, I don't think there will be a significant impact. We live in a litigious society where lawsuits occur daily. The more lawsuits we hear or read about, the less of an impact they have. A lot of eye care professionals read articles like this and forget them pretty fast. Only because I'm writing this analysis, did I pause to put more thought into the weight of the article. Otherwise, it would have been on its way to being forgotten. Optometrists are creatures of habit. It would take a lot for them to change their routine. I don't prescribe many Ciba lenses, and that's not going to change. If another Doc was successfully prescribing the O2Optix, they would likely continue to do so without missing a beat.
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