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<span class="articleLocation”>Mylan NV has agreed to pay $96.5 million
to settle claims by drug purchasers that it delayed launching a
generic version of Cephalon Inc’s narcolepsy drug Provigil in
exchange for payment from Cephalon.
The settlement was disclosed in a filing by the drug
purchasers in Pennsylvania federal court on Friday, and must
still be approved by the court.
The money will go to purchasers that bought brand-name
Provigil from Cephalon directly, like wholesalers and
A Mylan spokeswoman had no immediate comment.
A group of direct purchasers sued Mylan, Cephalon and two
other companies – Teva Pharmaceutical Industries Ltd and Ranbaxy
Laboratories Ltd – in 2006. They brought their case on behalf of
a nationwide class of direct purchasers.
The purchasers said Cephalon reached settlements in patent
lawsuits it brought against Teva, Mylan and Ranbaxy in which it
paid them to keep generic versions of Provigil off the market
until 2012. The lawsuit said the settlements, reached in 2005
and 2006, violated federal antitrust law.
Teva bought Cephalon in 2011. In April 2015, it settled with
the direct purchasers for $512 million.
In May 2015, it agreed to pay $1.2 billion to settle similar
claims by the U.S. Federal Trade Commission, which had
separately sued Cephalon over the Provigil settlements.
The agency has long criticized so-called “pay-for-delay”
settlements in which brand-name drugmakers pay their generic
counterparts to keep drugs off the market.
Ranbaxy is not a party to the settlement announced on
The case is King Drug Company of Florence Inc, on behalf of
itself and all others similarly situated, v. Cephalon Inc et al,
U.S. District Court, Eastern District of Pennsylvania, No.
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