Sandoz Agrees to $400 Million Deal to Resolve States’ Generic-Drug Antitrust Case

The agreement, which requires approval from a federal judge, covers claims brought by a coalition of 43 states and territories against Sandoz Inc. and Fougera Pharmaceuticals Inc., MLex reported. The states allege the companies were involved in long-running efforts to manipulate prices and restrain competition for a range of generic prescription medicines.

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The settlement follows an agreement in principle announced in August and moves the litigation closer to resolution ahead of a trial that had been expected in 2027, according to MLex and statements from state attorneys general.

The latest agreement calls for $400 million in payments and would bring Sandoz’s total payments to state enforcers to about $469 million when earlier settlements are included, according to Connecticut Attorney General William Tong’s office. The settlement also addresses allegations involving current and former international affiliates of Sandoz, including Novartis AG, Sandoz AG and Sandoz Group AG.

Related: Multistate Lawsuit Targets Novartis and Former Unit Sandoz Over Generic Drug Pricing

State officials have alleged that executives across the generic-drug industry coordinated with competitors through meetings, telephone calls, emails and text messages. The broader investigation has drawn on cooperating witnesses, millions of documents and extensive telephone records, according to statements from attorneys general involved in the litigation.

Under the agreement, Sandoz has also accepted internal compliance measures intended to promote competition and adherence to antitrust laws, according to the Connecticut attorney general’s office.

Source: MLex