Sun unit resolves antitrust lawsuit for $485m

Sun Pharmaceuticals has agreed to pay $485 million to settle an antitrust lawsuit relating to a generic drug application filed by its subsidiary, Ranbaxy, ending years of litigation.

The pharma company confirmed in an exchange filing that it had signed a binding agreement, yesterday, March 23.

“With a view to resolve this dispute and avoid uncertainty, the company has agreed to enter a comprehensive settlement,” the company said.

The case centred on Ranbaxy’s alleged pay for delay deals in connection with generic versions of hypertension drug Diovan, Nexium, a drug for the treatment of gastroesophageal reflux disease and peptic ulcers; and generic Valcyte, that treats cytomegalovirus disease.

The ligation centred on alleged conduct by Ranbaxy, before its acquisition by Sun Pharma  in 2014.

In complaints filed at the US District Court for the District of Massachusetts last year, medicines buyers accused Ranbaxy of manipulating the US Food and Drug Administration to secure the necessary approval to produce generic versions.

The settlement covers multiple antitrust, consumer protection, and civil class actions in connection with these generic drugs.

Sun Pharmaceuticals noted that: “As a consequence of the binding term sheet, the company shall execute the necessary settlement agreements, which, upon approval by the US court, will ensure that all allegations against the company, which it has denied, not conceded and not admitted, do not survive and stand extinguished.”

In 2017, the Indian pharmaceutical company was accused of conspiring to raise the price of generic asthma medicine in conjunction with Mylan.

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