Novartis to pay $30 million to health plans, consumers over Exforge antitrust claims

by Brendan Pierson

(Reuters) – Swiss drugmaker Novartis AG has agreed to pay $30 million to settle claims by health plans and consumers over a plan to delay the U.S. introduction of generic competition for its high blood pressure drug Exforge.

In a motion filed Wednesday in federal court in Manhattan, lawyers for the plaintiffs said the proposed deal is fair and “provides immediate, certain and significant relief” while avoiding “extremely costly” litigation.

Novartis did not immediately respond to a request for comment.

The deal is part of a broader $245 million settlement that will end all litigation, including claims from drug wholesalers and retailers, which Novartis announced in December. The drugmaker at the time did not say how the money would be divided.

In December, it asked the court to approve a $127 million settlement with so-called direct buyers such as drug wholesalers. It has not yet sought approval for the agreement with the retailers, which include CVS Health Corp and Walgreens Boots Alliance Inc.

U.S. District Judge Alvin Hellerstein must approve all settlements.

The class action lawsuit arose from a 2011 licensing agreement between Novartis and Endo International Plc’s Par Pharmaceutical unit.

The plaintiffs accused Novartis and Par of entering into an illegal “reverse payment” agreement to delay the launch of cheaper, generic versions of Exforge, a hypertension drug to lower blood pressure and reduce the risk of stroke.

The plaintiffs said Par agreed not to market a generic of Exforge for two years after the expiration of one of Novartis’ patents, and Novartis agreed not to compete with Par by marketing its own generic Exforge during a 180-day exclusivity period after Par entered the market. market.

Court documents show that annual U.S. sales of Novartis’ branded Exforge exceeded $400 million before sales of generic versions.

Endo filed for bankruptcy last year.

The case is In re Novartis and Par Antitrust Litigation, United States District Court, Southern District of New York, No. 18-04361.

For Novartis: Evan Chesler of Cravath, Swaine & Moore

For the plaintiffs: Robin van der Meulen of DiCello Levitt

Read more:

Novartis will pay $245 million to end antitrust proceedings involving Exforge generic drugs

(Reporting by Brendan Pierson in New York)