$96.5m settlement proposed in Provigil pay-for-delay case

Mylan has been offered a settlement to pay $96.5 million in a pay-for-delay case over Provigil (modafinil), a drug produced by Cephalon which reduces extreme sleepiness due to narcolepsy.

The proposed settlement was announced on Friday, February 3 in the US District Court for the Eastern District of Pennsylvania, after a decade of litigation with companies including King Drug, Rochester, and Burlington.

The proposal by the companies that sued Cephalon and Mylan would see them receive a cash settlement payment, and the litigation “will be put to rest, while avoiding continued litigation and potential appeals”.

In 2006, the suing companies filed the first antitrust lawsuit on behalf of all Provigil direct purchasers, alleging that Mylan and Cephalon had delayed generic versions through reverse payment agreements.

The suing companies have asked the court for final approval and a proposed plan of distribution for settlement funds.

They have also asked the court for an award of attorneys’ fees and reimbursement of expenses.