Pfizer (PFE.N) has agreed to pay $93 million to settle antitrust claims filed by wholesale drug distributors. The distributors accused Pfizer of conspiring with India’s Ranbaxy Laboratories to delay sales of less expensive generic versions of the cholesterol drug Lipitor.
Attorneys for Lipitor purchasers, including Rochester Drug Co-Operative Inc and Puerto Rico’s Drogueria Betances LLC, announced the agreement in a filing on Wednesday in Trenton, New Jersey. The settlement marks a resolution to the antitrust lawsuit, with Pfizer agreeing to pay $93 million.
The attorneys’ filing states that the distributors will continue their case against Ranbaxy.
Requiring judicial approval, the proposed settlement concludes over a decade of litigation, with Pfizer not admitting liability.
In a statement, Pfizer said the allegations were “factually and legally without merit.” It stated that the settlement was “fair, reasonable, and the best way to resolve this litigation.”
Sun Pharma (SUN.NS), which acquired Ranbaxy in 2014, did not immediately respond to a comment request.
In 1997, Pfizer launched Lipitor, and the drug amassed over $130 billion in sales during its initial 14 years on the market.
Pharmaceutical distributors accused Pfizer of fraudulently attempting to extend Lipitor’s patent rights. The company was accused of paying Ranbaxy to postpone the introduction of a generic version of Lipitor and participating in sham litigation over the drug.
Plaintiffs’ lawyers asserted that the settlement delivers “immediate economic relief” to class members, sidestepping the risk of ongoing litigation, potential appeals, and no recovery. They stated that they will seek up to $31 million in legal fees from the settlement fund.
Click here for more Business news.