Pharmaceutical major Glenmark Pharmaceutical to pay $87.5 million to settle multiple anti-trust and consumer protection lawsuits in the U.S. related to generic drugs, the company said in a regulatory filing late Tuesday. Glenmark Pharmaceutical said that the settlement will make clear that the company denies allegations by the Plaintiff groups.
There were multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia, U.S. against the company and its subsidiary Glenmark Pharmaceuticals Inc., USA, in connection with the generic drug Zetia, which is used for the treatment of cholesterol.
According to the company, the lawsuits alleged that in 2010, Glenmark entered an anti-competitive 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. In the antitrust and consumer protection litigation, Glenmark Pharmaceuticals was named as a defendant along with Schering Corporation, MSP Singapore Company LLC, Merck & Co., Inc., Merck Sharp & Dohme Corp., now known as Merck Sharp & Dohme LLC, and Schering-Plough Corp. (hereinafter referred to collectively as “Merck”). The Company and Merck have disputed these claims defending the matters vigorously. The trial for this case began on April 19, 2023, in the U.S. courts.
"Three plaintiff groups collectively representing all of the claims against Glenmark Pharmaceuticals and Merck are referred to as the Direct Purchaser Plaintiffs, the Retailer Plaintiffs, and the End-Payor Plaintiffs. With a view to resolve this dispute and avoid uncertainty, the Company has agreed to enter settlements with all three plaintiff groups, for a total amount of $ 87.5 million (US Dollar Eight Seven Point Five million), payable over two financial years," the company said.
"Under these settlements, the company must pay an amount of $48 million (US Dollar Forty Eight million) to the Direct Purchaser Plaintiffs, $25.5mn (US Dollar Twenty-Five Point Five million) to the Retailer Plaintiffs, and $14 million (US Dollar Fourteen 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," it added.
Reacting to the news, shares of Glenmark Pharmaceuticals surged 0.8% to hit a 52-week high of ₹522.50 apiece on the Bombay Stock Exchange. At 11:46 pm, the share price surged 0.44% at ₹520.65 after opening lower at ₹517.95. Currently, the share price of the pharmaceutical major traded 49.7% higher than the 52-week low of ₹348.90.