In a case so old that it predates Pfizer’s 2009 acquisition of Wyeth, the companies and a class-action group of direct drug purchasers have agreed to settle (PDF) an antitrust claim for $39 million.
The lawsuit, which was originally filed in 2011, contends that Wyeth conspired with Teva in a pay-for-delay scheme, to keep the Israeli drugmaker’s generic version of Wyeth’s antidepressant blockbuster Effexor XR off the market from June 2008 to June 2010.
At a New Jersey federal court on Wednesday, Pfizer and the buyers group—including Rochester Drug Co-Operative, Stephen L. LaFrance Holdings, SAJ Distributors and Uniondale Chemists—submitted their settlement proposal. Of the $39 million settlement figure, $13 million has been earmarked for lawyers representing the buyers.
In an emailed statement, Pfizer said that it and its subsidiary do “not admit to any liability or wrongdoing.”
“Pfizer firmly believes that all claims that have been or are asserted against Pfizer’s subsidiary Wyeth in this case are factually and legally without merit,” Pfizer added. “As this case has already gone on for over twelve years, considerations led the company to determine that the proposed class settlement in this case is fair, reasonable and the best way to resolve this litigation.”
Teva does not factor in the settlement. Claims against the company remain active.
Before it faced generic competition, Effexor XR was the top-selling antidepressant in the world. It generated $3.8 billion in revenue in 2008. As the first company to file a generic application for the product, Teva was provided a 180-day period of exclusivity that kept other generics off the market until it launched.
Pfizer has reached individual settlements with pharmacies such as Rite Aid, CVS and Walgreens, which also claimed Wyeth employed a pay-for-delay scheme in keeping venlafaxine generics off the market.
Pfizer acquired Wyeth for $67 billion in 2009, gaining other blockbuster products in the deal such as Enbrel and Prevnar.