On Monday, California Attorney General Xavier Becerra accounted that pharma companies are set to pay nearly $70 million to California over collusive deals that kept generic drugs from entering the market and increased prices.
He said, “Under such pay-for-delay agreements, drugmakers could maintain a monopoly on branded medications after their patents expired. The practices caused consumers to pay as much as 90% more for drugs shielded from competition.”
Becerra added, “Four settlements were reached with drug companies Teva Pharmaceutical Industries, Endo Pharmaceuticals and Teikoku Pharma over the practices.” These agreements will allow some consumers to recover the costs of the drugs.
According to the American politician, Teva kept a generic version of Provigil, a medicine that treats narcolepsy, from entering the US market for almost six years. So, part of the $69 million settlement paid by Teva will be refunded to California residents who purchased Provigil from 2006 to 2012.
Other settlements were related to a generic version of Lidoderm, a patch used to treat pain caused by shingles, which was kept from entering the market for more than two years.
A statement released by Teva said that the company “will not be making any new payments as part of the settlement and is not agreeing to any new terms.”
Teva said, “The $69 million will come from a pre-existing fund that was created, in 2015, when the company settled similar claims brought by the United States Federal Trade Commission (FTC).”
According to the settlement, Teva must pay California residents directly if the FTC does not disburse the $69 million.
The settlements do not allow Teva and Endo from engaging in further “pay-for-delay” agreements for at least 10 years, explained Becerra.
Executive Director of Endo Heather Zoumas-Lubeski called parts of Becerra’s news release “highly misleading.”
However, “Endo agreed to a $760,000 payment as part of that deal,” said Becerra.
Zoumas-Lubeski said, “The terms were not new and that California’s attorney general entered into a settlement agreement with Endo that provided for injunctive terms consistent with those Endo previously reached with the Federal Trade Commission in January 2017.” Teikoku Pharma has not immediately responded to comment. Becerra said, “No one, no one in America, should be forced to skip or ration doses of medicine they need. Especially when one of the reasons they can’t afford their medication is because the drug companies are colluding to keep the price artificially high, even when cheaper options could be available.”
