Pharmaceutical manufacturer Indivior Inc. has successfully reached a settlement of $30 million in a federal class-action antitrust lawsuit initiated by a consortium of health plans concerning the company’s opioid addiction treatment medication, Suboxone.
The global parent corporation, Indivior PLC, made the announcement of the settlement on Monday. The plaintiffs submitted a supporting memorandum for the settlement agreement to the U.S. District Court for the Eastern District of Pennsylvania on Saturday.
Suboxone is authorized for use as a means for individuals recovering from opioid addiction to alleviate or diminish withdrawal symptoms while undergoing addiction treatment.
This prolonged legal battle, spanning over a decade, saw health plans representing members in Virginia, 47 other states, Washington, D.C., and Puerto Rico alleging that Indivior contravened state antitrust and consumer protection regulations. Their claims asserted that the actions of Indivior led to increased costs for Suboxone and its generic alternatives. It was claimed that Indivior orchestrated a complex anticompetitive strategy involving price manipulation, a dubious citizen petition, and deliberate hindrance of the Federal Drug Administration’s Risk Evaluation and Mitigation Strategies (REMS) process. This maneuver aimed to impede competition from generic iterations of the drug.
Read more: Indivior Must Face Opioid Antitrust Suit
The settlement agreement’s ultimate approval rests with the district court and begins with the initial endorsement from the court. The payment by Indivior into an escrow account for the claimants is projected to occur in September.
Mark Crossley, CEO of Indivior, underscored the company’s commitment to aiding individuals afflicted by substance use disorders and mental health conditions. Crossley stated, “By satisfactorily resolving these historical legal matters at an appropriate value, we can further our mission of supporting patients and instill greater confidence in our stakeholders.”
While Indivior has concluded the settlement process for this particular lawsuit, the company is slated to face a separate trial scheduled to commence on October 30. This trial is in response to a lawsuit initiated by drug wholesalers who procured Suboxone from Indivior.
Source: Virginia Business