Novartis to pay $245 million to end antitrust litigation

Novartis AG said Wednesday it will pay $245 million to end a anti-monopoly dispute which accuses the Swiss drugmaker of trying to delay the US launch of generic versions of its high blood pressure drug Exforge.

Settlements with so-called direct buyers, indirect buyers and retailers require approval by a federal judge in Manhattan and will settle all pending claims against the company over the matter, Novartis said.

CVS Health Corp, Kroger Co, Rite Aid Corp and Walgreens Boots Alliance Inc are among the plaintiffs in the civil litigation, which began in 2018.

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

Novartis and Par were accused of entering into an illegal “reverse payment” agreement to delay the releases of less expensive generic versions of Exforgewhich treats hypertension to lower blood pressure and reduce the risk of stroke.

The plaintiffs said that Par agreed not to launch a generic Exforge for two years after the expiration of one of Novartis’ patents, and Novartis agreed not to compete with Par by launching its own generic Exforge during the 180-day exclusivity period following the entry of couple in the market

Novartis’ annual US sales of the Exforge brand exceeded $400 million before generic versions were sold, according to court documents.

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