A PYMNTS Company

US: Latest pay-for-delay class action takes on Teva, Barr

By  |  November 22, 2013

Teva Pharmaceuticals is now facing legal action as a federal complaint has been fired against the company, along with other generic drug manufacturers, alleging the companies colluded in a pay-for-delay scheme.

The class action suit accuses the companies of colluding to keep the generic form of the drug Aggrenox off pharmacy shelves. The drug is used to treat low-risk stroke patients.

According to court documents, Barr Pharmaceuticals, which is also named as a defendant in the case, began looking into regulatory approval for the generic in 2007. But Borhringer, which sold the brand name Aggrenox, entered into an exclusive payment agreement – a pay-for-delay agreement – to delay the release of the generic drug to prevent financial losses. The lawsuit alleges Boehringer paid Barr to delay the drug’s release until 2015.

Reports say the third defendant named is Duramed Pharmaceuticals.

Full Content: Penn Record

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