Ranbaxy, Teva Settle US Anti-competition Case - The New Indian Express

Ranbaxy, Teva Settle US Anti-competition Case

Published: 20th February 2014 10:27 AM

Last Updated: 20th February 2014 10:27 AM

The US units of Ranbaxy Laboratories Ltd and Teva Pharmaceuticals Industires have settled with the New York Attorney General over an agreement unlawfully restricting competition.

As per the terms of the settlement, the two generic drug makers will end a 2010 pact between both agreeing not to challenge each other’s rights to sell atorvastatin calcuim, the generic version of Pfizer Inc’s Lipitor -- a drug used to treat high cholestrol -- exclusively in the US. Teva and Ranbaxy will pay the New York state $300,000 and have agreed to refrain from similar agreements in the future.

Originally, the US regulatory framework encourages generic drug makers to challenge brand name medicines in order to make prices competitive and affordable.

“Agreements between drug manufacturers to protect each other’s market positions violate fundamental principles of antitrust law and can lead to higher drug prices,” said Erci Schneiderman, Attorney General.

The Ranbaxy-Teva case represents the latest application of recent legal precedent arising out of challenges to pay for delay agreements between brand name and generic pharmaceutical manufacturers.

According to the attorney general’s office, the pact was illegal regardless of whether there were any such effects, according to the settlement.

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