Novartis reaches out-of-court settlement in US generic drug dispute

According to court documents cited by Reuters, annual sales of Exforge in the US were over $400 million before the generic versions were marketed. © Keystone / Urs Flueeler

The Swiss pharma company has reached a “tentative agreement” to settle a class-action lawsuit related to the launch of generic versions of its hypertension drug. The deal has yet to be approved by US judges.

The Basel-based multinational told the AWP news agency on Thursday it had agreed to pay $245 million (CHF227 million) to three groups of plaintiffs to fully settle the case.

The antitrust litigation stemmed from a 2011 patent agreement between Novartis and Par, a pharmaceutical subsidiary of US-based Endo International. The two companies were accused of illegally colluding to delay the launch of cheaper generic versions of Novartis’ Exforge, a treatment designed to lower blood pressure and reduce the risk of strokes.

The plaintiffs accused Par of agreeing not to launch an Exforge generic for two years after a patent expired, and Novartis of agreeing not to compete with Par by launching its own generic for 180 days after Par entered the market.

In its statement, Novartis said the three groups which filed the lawsuit were direct purchasers, indirect purchasers and resellers. The out-of-court settlement, which has yet to be cleared by US judges, “will resolve all outstanding claims related to this matter for Novartis”, the company said.

According to court documents cited by Reuters, annual sales of Exforge in the US were over $400 million before the generic versions were marketed. Reuters also reports that the plaintiffs include major pharmacy chains such as CVS Health, Rite Aid and Walgreens Boots Alliance.