Teva Pharmaceutical Industries Ltd. has agreed to pay $1.2 billion in a settlement with the U.S. Federal Trade Commission (FTC), resolving claims that Cephalon Inc. blocked generic drug competition. Teva acquired Cephalon in 2012.
The FTC will hold the settlement money to compensate drug purchasers, including wholesalers, pharmacies and insurers, who overpaid for the sleep-disorder drug Provigil because of Cephalon’s illegal conduct, the commission said.
In a statement the FTC said: “Today’s landmark settlement is an important step in the FTC’s ongoing effort to protect consumers from anti-competitive pay-for-delay settlements.”
The settlement comes ahead of proceedings that were scheduled to begin Monday in a Philadelphia federal court.
Teva made way for its $40.1 billion takeover of rival drug maker Mylan NV in a deal that would add to a record period of consolidation in the pharmaceutical industry.
READ our report on that matter HERE