Teva Agrees to Pay $512m to Settle Suit

U.S. payout would be biggest-ever made to drug buyers.

Reuters
Teva Pharmaceuticals agreed to pay $512 million to settle a class action claiming that Cephalon, which Teva bought in 2011, used anticompetitive settlements to delay generic versions of its wakefulness drug Provigil, according to court papers.
 
The settlement is the largest ever to be paid to drug buyers that bought directly from manufacturers over allegations of delaying generic drugs, according to a motion to approve the settlement filed Friday in Philadelphia.
 
Teva and an attorney for the plaintiffs could not immediately be reached for comment.
 
The settlement marks the latest in a string of bad news for Teva over the past week, including U.S. approval of the first generic rival to its top-selling Copaxone drug and remarks by the CEO of Mylan, a company Teva may want to acquire, rejecting the idea. Teva shares fell 0.6% to 251 shekels ($63.71) in Tel Aviv.
 
The lawsuit, filed in 2006 by drug wholesalers and retailers, claimed that Cephalon entered into settlements in patent lawsuits with Teva, Mylan and Ranbaxy Laboratories to keep generic versions of Provigil off the market until 2012. The lawsuit said that the settlements violated federal antitrust law.
 
Mylan and Ranbaxy, which are also defendants in the case, are not part of the settlement, according to Friday’s motion.
 
The U.S. Federal Trade Commission also sued Cephalon over the settlements in 2008. A bench trial in that case is scheduled for June.