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Teva settles 'pay-to-delay' case with FTC

Published on 21/02/19 at 10:15am

Teva Pharmaceuticals has settled a dispute with the Federal Trade Commission (FTC) over three separate federal court antitrust lawsuits involving the firm’s subsidiary Cephalon.

The settlement comes after Teva was made to pay the FTC $1.2 billion over so-called ‘pay-to-delay’ policies in which the firm was accused of participating in blocking the entry of generic drugs into the market by receiving payments from companies producing branded drugs tin return for delaying generics market entry.

The FTC claimed that deals in which generic drugmakers are paid to stay off the market violate antitrust laws.

“This settlement represents another milestone in the Commission’s unwavering commitment to put an end to harmful reverse-payment agreements,” said FTC Chairman Joe Simons. “This broad settlement prevents the world’s largest manufacturer of generic drugs from entering into collusive agreements that prevent price competition by keeping generic drugs off the market.”

The agreement will see Teva be prohibited from entering into a payment infringement settlement agreement that includes a reverse payment transferring value from the brand to the generic. Meanwhile the FTC will dismiss its claims against Teva and its affiliates in three outstanding cases. Teva will not pay any more money to the FTC.

“We are very pleased to put these litigations against the FTC behind us. We also appreciate the FTC's willingness to modify our consent decree to eliminate certain administrative burdens that will make it easier for us to navigate the patent issues that are critical to our business,” said Brendan O’Grady, a Teva executive vice president.

Louis Goss

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