Novartis to pay $30 mln to health plans, consumers over Exforge antitrust claims

Endo International

23/02/2023 20:41

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      Deal is part of $245 million package announced last year
    

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      Novartis, Endo unit accused of conspiring to keep
competitors
out
    

  
    By Brendan Pierson
       Feb 23 (Reuters) - Swiss drugmaker Novartis AG has
agreed to pay $30 million to settle claims by health plans and
consumers that it schemed to delay the U.S. launch of generic
competition for its Exforge hypertension drug.
    In a motion filed in Manhattan federal court Wednesday,
lawyers for the plaintiffs said the proposed deal was fair and
"provides immediate, certain, and meaningful relief" while
avoiding "enormously expensive" litigation.
    Novartis did not immediately respond to a request for
comment.
    The deal is part of a broader $245 million settlement to end
the entire litigation, including claims by drug wholesalers and
retailers, which Novartis announced in December. The drugmaker
at the time did not say how the money would be broken down.
    In December, it sought court approval for a $127 million
settlement with so-called direct purchasers, such as drug
wholesalers. It has not yet sought approval of an agreement with
the retailers, which include CVS Health Corp and Walgreens Boots
Alliance Inc.
    U.S. District Judge Alvin Hellerstein must approve all of
the settlements.
    The class-action litigation stemmed from a 2011 licensing
agreement between Novartis and Endo International Plc's Par
Pharmaceutical unit.
    Plaintiffs accused Novartis and Par 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.
    Endo filed for bankruptcy last year.
    The case is In re Novartis and Par Antitrust Litigation,
U.S. District Court, Southern District of New York, No.
18-04361.
    For Novartis: Evan Chesler of Cravath, Swaine & Moore
    For plaintiffs: Robin van der Meulen of DiCello Levitt
    Read more:
    Novartis to pay $245 mln to end antitrust cases over Exforge
drug generics
 (Reporting By Brendan Pierson in New York)
 ((Brendan.Pierson@thomsonreuters.com; 332-219-1345 (desk);
646-306-0235 (cell);))