Cephalon, U.S. states
reach $125 million settlement over generic drugs
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[August 05, 2016]
By Sarah N. Lynch
WASHINGTON (Reuters) - Cephalon has reached
a $125 million settlement with 48 states in connection with its alleged
efforts to delay generic versions of its blockbuster sleep disorder drug
Provigil from entering the market, New York Attorney General Eric
Schneiderman said on Thursday.
The settlement with Cephalon, now owned by Teva Pharmaceuticals,
comes a little more than a year after the company struck a $1.2
billion parallel settlement with the Federal Trade Commission.
The FTC accused the company of protecting its monopoly on Provigil
by paying generic drug makers to drop their challenges to Cephalon's
patent, in what is known as a "pay-for-delay" deal.
A company spokeswoman said Thursday's settlement resolves litigation
with the states in connection with "an 11-year-old settlement
between Cephalon and various other companies."
"It will be funded from the proceeds of the settlement entered into
in 2015 between Cephalon and the FTC," she added.
In a statement, Schneiderman said Cephalon defrauded the Patent and
Trademark Office in order to secure an additional patent, which was
later invalidated by a court.
At the same time, the company successfully delayed generic
competition of the drug by six years through filing patent
infringement lawsuits and then settling them by paying competitions
to delay selling generic versions of Provigil, Schneiderman said.
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"When pharmaceutical companies put profits ahead of people by
illegally restricting competition, it harms patients across our
state," Schneiderman said.
"This misconduct which drives up the cost of prescription drugs will
not be tolerated."
The settlement is still subject to court review.
(Reporting by Sarah N. Lynch; Editing by Paul Simao)
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