Companies

Ranbaxy, Teva settle US antitrust claims

Our Bureau New York | Updated on March 12, 2018 Published on February 19, 2014

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The US units of controversy-ridden Ranbaxy Laboratories and Teva Pharmaceuticals Inc agreed to settle New York state claims that they colluded on generic-drug sales, including copies of the world’s best-selling medicine, Lipitor.

The drug majors settled with the New York Attorney-General on claims that a 2010 agreement between them “unlawfully restricted competition.”

Ranbaxy and Teva will pay New York state $300,000 and, as part of the settlement, also agreed not to enter into similar deals.

According to reports, the settlement concluded an investigation into the agreement relating to atorvastatin calcium, the generic version of Pfizer Inc’s Lipitor, which is used to treat high cholesterol.

“Agreements between drug manufacturers to protect each other’s market positions violate fundamental principles of antitrust law, and can lead to higher drug prices,” said New York Attorney-General Eric Schneiderman, Reuters reported.

Reuters adds that the atorvastatin agreement related to the sale of only one drug, but by including “no-challenge” commitments as part of that agreement, the companies shielded dozens of their drugs from legal and regulatory challenges by the other.

However, a spokesperson from Ranbaxy, which is under the scanner following regulatory scrutiny by the US Food and Drugs Administration, said, “Ranbaxy is pleased that the recent investigation by the Attorney-General of New York, related to an agreement regarding generic atorvastatin tablets, has been brought to closure, and that the Attorney-General did not find any anticompetitive effects from the agreement in question.”

The spokesperson added that the company believes the agreement was “pro-competitive and an important part of making the product readily available to patients and the US healthcare system in a timely fashion.”

Published on February 19, 2014
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