Japan/Israel: Pharma rivals call truce in generic drug patent collusion case

Pharmaceutical rivals Ranbaxy and Teva have reportedly decided to settle litigation that accused the companies of colluding on the sale of generic drugs, according to New York Attorney General Eric Schneiderman.

In a statement, Schneiderman announced that Japan’s Daiichi Sankyo, which owns Ranbaxy, and Israel-based Teva conspired to agree not to challenge each other’s generic drug sales for a period of six months after the brand name patent expires. Reports say that agreement affected the sale of the generic form of the world’s top-selling drug Lipitor.

The Attorney General said that “agreements between drug manufacturers to protect each other’s market positions violate principles of antitrust law, and can lead to higher drug prices.”

The companies reportedly made a “no challenge” agreement with each other in 2010 to not challenge each other’s filings for the exclusive right of the generic forms of pharmaceuticals.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.