Mylan pays $96.5 million to settle pay-for-delay case

pharmafile | February 7, 2017 | News story | Research and Development, Sales and Marketing Cephalon, Mylan, Teva, antitrust 

Mylan has agreed to pay $96.5 million in order to settle an antitrust case. The case was related to the delaying of a generic version of Provigil, in exchange for payment from Cephalon, a part of Teva.

The case was brought by a group of direct purchasers who launched the antitrust lawsuit against Teva, Mylan, Cephalon and Ranbaxy Laboratories. The case is part of a wider crackdown on the so-called pay-to-delay tactics used by pharmaceutical companies to ensure competitors do not reach the market.

Often, the owner of the branded product will pay the owners of potential generics to stay off the market, thereby keeping the price of the branded product stable. Such tactics were used to exploit legal loopholes but recent heavy fines will dissuade companies from pursuing similar tactics in the future.

Teva has been hit particularly hard by the same instance of pay-to-delay; it was fined $1.2 billion by the Federal Trade Commission that ruled it had been guilty of paying to delay the release of the generics, with the verdict coming two years prior in 2015. The size of the fine placed a marker for the rest of the industry to be aware that exploiting this particular legal loophole was no longer acceptable.

Mylan has so far avoided admission of any guilt in the case, only suggesting that it had paid to resolve the dispute without accepting any responsibility.

The fee will be paid directly to the nationwide class of direct purchasers who purchased Provigil from Cephalon.

Ben Hargreaves

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