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In a blow to the pharmaceutical industry, the California Supreme Court ruled that Novartis (NVS) can be held responsible for injuries blamed on versions of its drugs made by generic manufacturers.

The ruling contradicted most decisions in courts elsewhere around the country and, importantly, may create new liability for drug makers, which could be sued in California for failing to warn patients about the risks posed by generic versions of their medicines.


This type of liability has been a contentious issue for years, especially after the U.S. Supreme Court ruled in 2011 that generic drug makers cannot be sued for failing to provide adequate label warnings about potential side effects because federal law requires them to use the brand-name version of the labeling.

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