$70 million settlement reached in generic drug delay case
Three drug companies will pay a total of nearly $70 million to California to settle charges of delaying the sale of generic drugs to keep brand-name drug prices high, the state's attorney general said Monday.
Of that amount, $69 million will be paid by Teva Pharmaceutical Industries Ltd. and its affiliates for holding off on introducing the generic narcolepsy drug Provigil to the market for nearly six years, the Associated Press reported. That is the largest pay-for-delay settlement paid to any state, according to California Attorney General Xavier Becerra.
Another $760,000 settlement was reached with Teva, Endo Pharmaceuticals, and Teikoku Pharma U.S. for withholding a generic version of the pain patch Lidoderm from the market for nearly two years, the AP reported.
In pay-to-delay deals, brand-name drug makers pay generic drug makers to keep their cheaper version of the drug off the market for an agreed period of time, the AP reported.
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