Sun Pharma settles at $75m in industry-wide price-fixing case

Sun Pharma has decided a settlement of $75m as part of a case surrounding various pharma companies fixing their prices.

Sun Pharma and subsidiary, Taro Pharmaceutical, have agreed the settlement which will end their involvement in this case. There is also a chance that this upfront sum could be adjusted upward by around $20m, depending on various clauses in the settlement agreements, according to court documents which were filed last week.

The lawsuit dates back to 2016, and originally revolved around the heart rhythm drug digoxin as well as the skin infection antibiotic doxycycline, however it has since grown and now includes approximately 80 medications.

Many drugmakers, including Sun Pharma and Taro Pharmaceutical, were alleged to have taken part in a “conspiracy among manufacturers” so they could charge higher prices on generic medicines than is reasonable. It was alleged that the drug makers used events such as trade shows, industry dinners and golf outings, among others, to collude and decide on each company’s “fair share” of the market.

Sun also settled another case last year, in which its generics unit, Ranbaxy, paid over $485m to resolve, but still not admit to, allegations of anticompetitive tactics. In this previous case, generic drug buyers claimed that Ranbaxy’s fraudulent and inaccurate regulatory filings led to some low-price generics staying off the market.

Betsy Goodfellow