Teva and FTC reach settlement over ‘pay-for-delay’
Teva Pharmaceutical and the US Federal Trade Commission (FTC) have reached a settlement to end their long-running battles over so called “pay-for-delay” agreements in the pharmaceutical industry.
The FTC made the announcement yesterday, February 19. It said the settlement will prohibit
Teva from engaging in reverse-payment agreements that hinder consumer access to lower-priced generic drugs.
The settlement, which is subject to court approval, ends three separate antitrust lawsuits involving Teva and its subsidiaries.
The FTC brought the cases against Teva and its subsidiaries because of so-called “pay-for-delay settlements”. This is when companies pay or compensate generic rivals to delay releasing a cheaper version of their patented product in order to resolve patent litigation.
In 2009, the FTC took legal action against Solvay Pharmaceuticals for paying Watson Pharmaceuticals to delay bringing out a generic version of AndroGel, a testosterone cream.
In 2012, Watson acquired Actavis and adopted its name. The company is a subsidiary of Teva.
The second case, which dates to 2014, also involves AndroGel. The FTC accused AbbVie, which had acquired the drug, of paying Teva and another generic maker to again delay bringing out a cheaper version of the medicine.
In the third case, Dublin-based Endo Pharmaceuticals was accused of paying generic companies, including Watson, to refrain from bringing out a generic version of Lidoderm, which is used to relieve nerve pain.
FTC chairman Joe Simons said the settlement prevents Teva “from entering into collusive agreements that prevent price competition by keeping generic drugs off the market”.
“This settlement represents another milestone in the commission’s unwavering commitment to put an end to harmful reverse-payment agreements,” said Simons.
Teva will not pay any additional money to the FTC as part of the settlement.
Brendan O’Grady, head of North America commercial at Teva, said the company was pleased to put the litigation behind it.
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