Glenmark to pay $87.5 million to settle lawsuits related to generic drug in US

Glenmark Pharmaceuticals Ltd. | Pharmaceuticals & Drugs | Healthcare | BSE: 532296 | NSE: GLENMARK

26 Apr 2023 Evaluate

Glenmark Pharmaceuticals has planned to pay $87.5 million to three plaintiff groups to settle multiple antitrust and consumer protection lawsuits in the US related to a generic drug. There were multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia against the company and its subsidiary Glenmark Pharmaceuticals Inc. in connection with generic Zetia, a drug for the treatment of cholesterol.

The lawsuits alleged that in 2010, Glenmark entered an anticompetitive agreement to settle patent infringement litigation involving a patent related to ezetimibe (the active ingredient in Zetia) with Schering Corporation and MSP Singapore Company LLC. The trial for the case began on April 19, 2023 in the US courts. Three plaintiff groups collectively representing all of the claims against the company and Merck are referred to as the Direct Purchaser Plaintiffs, the Retailer Plaintiffs, and the End-Payor Plaintiffs.

Under these settlements, the company plans to pay $48 million to the Direct Purchaser Plaintiffs, $25.5 million to the Retailer Plaintiffs and $14 million to the End-Payor Plaintiffs, in accordance with the separate agreements entered into with each of them. The settlements will make clear that the company denies each and every one of the allegations against it and the settlements are not on the basis of it having conceded or admitted any liability or illegality.

Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across Generics, Specialty and OTC business with operations in over 50 countries.