Pfizer Settles Accusations of Market Manipulation in Lipitor Antitrust Lawsuit for $93 Million
Pfizer has agreed to pay $93 million to settle a longstanding antitrust lawsuit brought by wholesale drug distributors
Pfizer Settles Accusations of Market Manipulation in Lipitor Antitrust Lawsuit for $93 Million
Pfizer has agreed to pay $93 million to settle a longstanding antitrust lawsuit brought by wholesale drug distributors. These distributors accused Pfizer of conspiring with Indian pharmaceutical company Ranbaxy Laboratories to delay the introduction of cheaper generic versions of the popular cholesterol drug Lipitor.
The lawsuit alleged that Pfizer engaged in multiple tactics to fraudulently extend its patent rights over Lipitor. This reportedly included paying Ranbaxy to hold back their own generic version and filing sham lawsuits against them to further hinder competition.
While Pfizer maintains their innocence and calls the allegations baseless, they settled the case after over a decade of legal battles. They characterise the settlement as a pragmatic solution to avoid further litigation and potential appeals.
Pfizer did not admit liability as part of the settlement, which still requires a judge's approval.
The agreement was disclosed on Wednesday in a US court filing in Trenton, New Jersey, by attorneys representing Lipitor purchasers including Rochester Drug Co-Operative Inc and Puerto Rico's Drogueria Betances LLC.
Launched in 1997, Lipitor was a blockbuster drug, generating over $130 billion in sales during its first 14 years. Lawyers representing Lipitor purchasers see the settlement as providing immediate financial relief to their clients. They plan to seek up to $31 million in legal fees from the settlement fund.
Interestingly, while Pfizer settles, the case against Ranbaxy continues. This adds another layer to this complex legal saga surrounding the accessibility of affordable generic drugs.