Feb 18 The New York Attorney General and the
U.S. units of Ranbaxy Laboratories Ltd and Teva
Pharmaceutical Industries Ltd have settled claims that
an agreement between the two drugmakers unlawfully restricted
Under the terms of the settlement, the two generic drug
makers will end a 2010 agreement of not challenging each other's
rights to sell certain drugs exclusively in the United States.
"Agreements between drug manufacturers to protect each
other's market positions violate fundamental principles of
antitrust law, and can lead to higher drug prices," Attorney
General Eric Schneiderman said in a statement.
Teva and Ranbaxy will pay the New York state $300,000 and
have agreed to refrain from similar agreements in the future.
Schneiderman said that this case represents the latest
application of recent legal precedent arising out of challenges
to "pay for delay" agreements between brand name and generic
The so-called "pay-for-delay" deals where brand-name
companies pay generic rivals not to sell their versions of a
drug at a fraction of the original price caught the attention of
regulators around the world because it raises consumer bills and
public healthcare costs.
The settlement, expected to be announced on Wednesday,
concludes an investigation into the agreement relating to
atorvastatin calcium, the generic version of Pfizer Inc's
Lipitor - a drug used to treat high cholesterol.
The atorvastatin agreement related to the sale of only one
drug, but by including "no-challenge" commitments as part of
that agreement, the companies shielded dozens of their drugs
from legal and regulatory challenges by the other, the statement
Both Ranbaxy and Teva neither admitted nor denied the
allegations, as part of the settlement.
A Teva spokeswoman, Denise Bradley, confirmed the
settlement, but declined further comment.
Ranbaxy, which is under regulatory scrutiny sparked by a
U.S. ban on the bulk of its drugs, could not immediately be
reached for comment.