A PYMNTS Company

US: FTC fines Cephalon $1.2 billion in generic drug Provigil case

 |  May 31, 2015

The US anti-competition regulator has fined Cephalon $1.2 billion bringing to a close a seven year old lawsuit for alleged blocking of generic competition to its blockbuster sleep-disorder drug Provigil after the expiry of its patent.

The settlement worked out by the Federal Trade Commission ensures that Cephalon, which was acquired by Teva Pharmaceutical Industries Ltd. in 2012, will make a total of $1.2 billion available to compensate purchasers, including drug wholesalers, pharmacies, and insurers for being overcharged.

Some of the purchasers who have settled related litigation and received compensation made by Teva will now have to deposit the same in the FTC fund for equitable monetary relief, according to the terms of the settlement, which is subject to approval of the District Court Judge.

Trial in the case is scheduled to begin June 1 in the US District Court for the Eastern District of Pennsylvania.

Full content: Forbes

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