Teva set­tles gener­ics al­le­ga­tions with FTC for $1.2 bil­lion

Modern Healthcare - - LATE NEWS - —Lisa Schencker

Drug­maker Teva Phar­ma­ceu­ti­cals will pay $1.2 bil­lion to set­tle al­le­ga­tions by the Fed­eral Trade Com­mis­sion that a com­pany it ac­quired stalled generic ver­sions of its popular sleep-dis­or­der drug Provigil from en­ter­ing the mar­ket.

The set­tle­ment, which still must be ap­proved by a judge, is the first in an FTC case over so-called “pay-for-de­lay” since a U.S. Supreme Court de­ci­sion in 2013 made it eas­ier to chal­lenge the tac­tic un­der fed­eral an­titrust law.

In pay-for-de­lay cases, brand-name drug­mak­ers pay set­tle­ments to generic drug­mak­ers, in patent dis­putes, to keep cheaper generic drugs off the mar­ket.

The FTC al­leged that Cephalon, which was pur­chased by Teva in 2012, sued four generic drug man­u­fac­tur­ers for patent in­fringe­ment, and then, in 2005 and 2006, col­lec­tively paid them more than $300 mil­lion to set­tle the patent chal­lenges and keep their gener­ics off the mar­ket for six years.

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