Lawsuits and US$450 million payout for price fixing and delayed generics entry

Home/Policies & Legislation | Posted 29/10/2021 post-comment0 Post your comment

In late September 2021, Gilead Sciences, Teva and Bristol Myers Squibb, were sued by US pharmacy chains related to delayed launch of HIV generics. In early October 2021, three generics drugs companies, Taro Pharmaceuticals USA, Novartis’ Sandoz and Apotex agreed to pay almost US$450 million to resolve alleged claims that they illegally collaborated on price, supply and allocation of numerous medications.

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Gilead Sciences, Teva and Bristol Myers Squibb sued
The lawsuit launched by major US pharmacy chains CVS and Rite Aid against Gilead Sciences, Teva and Bristol Myers Squibb specifically desires billions of dollars’ worth of reverse-payment agreements between the trio, that led to the withholding of generic versions of HIV drugs Viread, Atripla, Truvada and Evotaz from the market.

It is alleged that between 2004 to 2017, Gilead made tens of billions of dollars from HIV medications while introducing only a single new pharmaceutical compound. In addition, Gilead engaged in settlement agreements, collusive collaborations and product-hopping schemes whilst unfairly increasing the exorbitant pricing for its HIV medications, prior to generics market entry. Gilead is also accused of suppressing competition of certain drugs and of collaborating with Teva to not launch generic versions. Gilead collaborated with Bristol Myers Squibb to develop some of the HIV drugs, yet the suit argues that these were in fact created by Czech institution in the 1980s.

Illegal collaboration of Taro Pharmaceuticals USA, Novartis’ Sandoz and Apotex
The US$450 million to be paid by Taro Pharmaceuticals USA, Novartis’ Sandoz and Apotex is in addition to the more than US$400 million already paid by the trio in criminal penalties related to price fixing. In addition, the companies have entered a five-year corporate integrity agreement, which includes internal monitoring and price transparency provisions, among other checks and balances.

Taro will pay over US$200 million, for alleged violations involving the non-steroidal drug etodolac, and nystatin-triamcinolone cream and ointment to treat skin infections. Sandoz will pay US$185 million due to alleged issues with benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions. Apotex will pay US$49 million in connection with its sale of pravastatin, a drug used to treat high cholesterol and triglyceride levels.

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Se ha lanzado la nueva sección del ‘Foro Latinoamericano’ sobre GaBI. El objetivo de esta nueva sección es brindarle las últimas noticias y actualizaciones sobre desarrollos de medicamentos genéricos y biosimilares en América Latina en español.

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