Novartis to pay $245 mln to end antitrust cases over Exforge drug generics (updated)

Endo International

29/12/2022 01:15

(Adds accusations, background, settlement details, byline)
    By Jonathan Stempel
       NEW YORK, Dec 28 (Reuters) - Novartis AG  NOVN.S  said
on Wednesday it will pay $245 million to end antitrust
litigation accusing the Swiss drugmaker of trying to delay the
launch in the United States of generic versions of its Exforge
hypertension drug.
    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, Novartis said.
    CVS Health Corp  CVS.N , Kroger Co  KR.N , Rite Aid Corp
 RAD.N  and Walgreens Boots Alliance Inc  WBA.O  are among the
plaintiffs in the civil litigation, which began in 2018.
        The class-action litigation stemmed from a 2011
licensing agreement between Novartis and Endo International
Plc'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, which treats hypertension to lower
blood pressure and reduce the risk of strokes.
  
        Plaintiffs said Par agreed not to launch an Exforge
generic for two years after the expiration of one of Novartis's
patents, and 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.
  
        Novartis's annual U.S. sales of brand-name Exforge
exceeded $400 million before generic versions were sold, court
papers show.
  
        The case is In re Novartis and Par Antitrust Litigation,
U.S. District Court, Southern District of New York, No.
18-04361.
  
 (Reporting by Jonathan Stempel in New York; Editing by
Muralikumar Anantharaman and Bradley Perrett)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))