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CVS Joins Retailers in Antitrust Battle Over Takeda Drug Deal

By  |  September 10, 2025

CVS has filed an antitrust lawsuit accusing Takeda Pharmaceuticals and TWi Pharmaceuticals of colluding to keep a generic version of the heartburn drug Dexilant off the U.S. market. The case comes just months after Walgreens and other major retailers launched similar legal action against the two drugmakers.

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    According to the complaint, CVS alleges that Takeda paid TWi to delay introducing its lower-cost generic alternative, a move the retailer describes as a “reverse payment” or “pay-for-delay” scheme. Per the lawsuit, the arrangement stemmed from a settlement reached between the two companies a decade ago, which postponed the launch of TWi’s generic until January 2022—nearly two years after Takeda’s patent protections were set to expire.

    The suit further claims that this deal not only stalled TWi’s generic version but also discouraged competition from other generic manufacturers, effectively extending Takeda’s monopoly beyond its patent life. According to a statement in the filing, this lack of competition forced CVS to spend more on purchasing Dexilant for its customers.

    Walgreens, along with Kroger, Albertsons, and H-E-B, made similar arguments in their March complaint, asserting that Takeda and TWi unlawfully inflated costs through the alleged arrangement. Like the earlier case, CVS’ complaint was filed in federal court in the Northern District of California.

    Read more: Appeals Court Upholds Oregon Drug Pricing Transparency Law

    The CVS filing also names Bora Pharmaceuticals, which acquired TWi in 2022, and Upsher-Smith Laboratories, a Bora subsidiary formed after a merger with TWi earlier this year.

    This is not the first time CVS has targeted Takeda in court. In January 2024, the company filed another antitrust lawsuit, claiming the Japanese drugmaker suppressed competition around its constipation treatment Amitiza.

    Per a statement in the latest court filing, CVS contends that Takeda’s repeated use of such agreements demonstrates a broader strategy to keep cheaper generic drugs off the market, raising costs for pharmacies and patients alike.

    Source: FiercePharma