Novartis to pay $245M to end antitrust litigation over generic Exforge
Novartis AG has agreed to pay $245 million to end antitrust litigation accusing the company of trying to delay the launch of generic versions of the drug Exforge in the United States, according to a Reuters report.
Exforge is used to treat hypertension to lower blood pressure and reduce the risk of strokes.
According to the report, Novartis said that the settlements with so-called direct purchasers, indirect purchasers and retailers require approval by a federal judge in Manhattan, and will resolve all outstanding claims against the company over the matter.
Plaintiffs in the civil litigation, which started four years ago, include CVS Health, Kroger, Rite Aid and Walgreens Boots Alliance. Novartis and Par were accused of entering an illegal "reverse payment" agreement to delay launches of generic Exforge, the report noted.
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The class-action litigation was the result of a 2011 licensing agreement between Novartis and Endo International's ENDPQ.PK Par Pharmaceutical unit.
Novartis and Par were accused of entering an illegal "reverse payment" agreement to delay launches of less expensive, generic versions of Exforge. The plaintiffs said Par agreed not to launch an Exforge generic for two years after the expiration of one of Novartis's patents. Novartis agreed not to compete with Par by launching its own Exforge generic during the 180-day exclusivity period following Par's entry into the market, according to the report.