Sandoz Group AG (SDZNY), a Swiss generic and biosimilar medicines maker, announced Tuesday that it has agreed to pay $275 million to the class of end payer plaintiffs to resolve legacy US generic drug antitrust class action litigation.
The company has also taken a provision of $265 million to cover potential additional settlement costs, for the outstanding claims brought by opt-out plaintiffs and State Attorneys' General.
The settlement payment and the provision will be included in the company's 2024 financial results, but it will not affect the current full-year 2024 and mid-term guidance.
Sandoz US has entered into a settlement agreement with the plaintiffs with a number of steps to resolve the litigation, but it contains no admission of wrongdoing by the company.
Sandoz Group's indirect subsidiaries, Sandoz Inc. and its unit Fougera Pharmaceuticals Inc., have agreed with the class of end payer plaintiffs in the multi-district litigation entitled In re Generic Pharmaceuticals Pricing Antitrust Litigation in the US District Court for the Eastern District of Pennsylvania.
The deal resolves all of the damages claims of the end payer class, which is comprised generally of certain consumers, insurers, health and welfare funds, employee benefit plans, and other entities that paid for and reimbursed the sales of drugs.
Under the deal, the total $275 million will be paid before December 31, 2024 in exchange for a full release of all claims asserted against it in the end payer class action by the settlement class members.
The settlement is subject to Court approval, as is required for class settlements under US law.
The latest deal follows the previously announced settlements with the US Department of Justice in 2020 and 2021 and with the direct purchaser plaintiffs' class in February 2024.
The remaining claims are seeking damages for alleged anticompetitive conduct in the US market. Certain US States and Territories as well as the indirect reseller plaintiff class and individual plaintiffs brought these claims in the multidistrict litigation.
In addition to the US generic antitrust litigation, Sandoz Inc., Sandoz Canada Inc., and Fougera Pharma have been named in a class action in Ontario, Canada for alleged price fixing in the Canadian generic pharmaceutical market.
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