10 August 2016Americas

Teva to pay $125m after ‘pay-for-delay’ case

Teva has settled a dispute with 48 US states after it was found guilty of attempting to pursue ‘pay-for-delay’ agreements with generic drug makers.

The settlement requires the Israel-based company to pay $125 million.

The dispute centred on a patent originally owned by Cephalon related to sleep deprivation drug Provigil (modafinil). Cephalon, formerly based in the US, was bought by Teva in 2012.

However, before the acquisition, it was accused of “buying off the threat” from generic competitors and stopping them from entering the market with their own versions of the drug.

The settlement, announced on Thursday on August 4, comes  after a parallel settlement of $1.2 billion between Teva and  the Federal Trade Commission which centred on the same drug.

A company spokeswoman told Reuters that the settlement with the US states will be funded from the proceeds of the FTC agreement.

Eric Schneiderman, attorney general for New York, said in a  statement: “When pharmaceutical companies put profits ahead of people by illegally restricting competition, it harms patients across our state. This misconduct, which drives up the cost of prescription drugs, will not be tolerated.”

The settlement is subject to a court review.

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