Lupin will pay US$150 million to resolve antitrust litigation over its alleged role in a scheme to delay generic versions of the blockbuster diabetes treatment Glumetza, 10 days after Bausch Health settled for US$300 million, according to a federal court filing in San Francisco.
The drug distributors leading part of the lawsuit sought preliminary approval for the deal late Monday, September 20, from Judge William Alsup, who’s overseeing the consolidated case in the US District Court for the Northern District of California, where a trial of “direct purchaser” claims is set to start October 4.
Glumetza, an extended-release form of metformin hydrochloride, was approved by the Food and Drug Administration (FDA) in 2005, originally sold by Depomed, now called Assertio. Depomed marketed the drug in partnership with Santarus, which was later acquired by Bausch.
In 2009, Lupin applied to the FDA to make a generic version of the drug, and Depomed sued. In 2012, the companies reached a settlement in which Lupin agreed to delay launch of its product until 2016, and Depomed agreed to pay Lupin’s legal fees and not to offer its own so-called authorized generic that would compete with Lupin’s during Lupin’s legally mandated 180-day period of market exclusivity.
In their 2019 lawsuit, the Glumetza purchasers allege that arrangement was an illegal “reverse payment” or “pay-for-delay” settlement, which courts have held can violate federal antitrust laws. They said Depomed later reached settlements with other generic companies to delay competing products as well, though they are not named as defendants.
The purchasers claim that the illegal monopoly allowed Bausch, then known as Valeant Pharmaceuticals, to hike the drug’s price by 800% in 2015. Though generic versions have since come on the market, prices remain higher than they would be without the 2012 settlement, the purchasers say.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh