Viatris Inc., formerly Mylan's drugmaker, announced Monday that it has agreed to pay $264 Million to settle a class action lawsuit alleging it participated in a scheme for delaying generic competition to EpiPen allergy treatment.
The settlement proposed would end litigation that began in response to public outrage in 2016 about Mylan's decision in 2008 to increase the list price of a pair EpiPens to $600, from $100 in 2008. This fueled a debate over rising U.S. drug prices.
This case was brought by consumers and third-party payers such as insurers. The plaintiffs are seeking $1 billion in damages. Some state antitrust laws may allow for a multiplier effect.
Pfizer and Mylan, who manufactured EpiPens, were accused of engaging in anticompetitive conduct that enabled them to hold a monopoly on the market.
However, U.S. District Judge Daniel Crabtree of Kansas City, Kansas dismissed most of Mylan's case last year, leaving only one claim regarding a 2012 settlement in patent litigation with generic drugmaker Teva Pharmaceutical Industry Ltd.
Viatris stated that the settlement, currently awaiting court approval, does NOT contain any admissions of liability.
Plaintiffs alleged that the defendants had entered into an illegal "pay-for delay" settlement with Teva. This resulted in Teva releasing a generic EpiPen version later than expected. Mylan was able to increase its product's cost without fear of competition.
Plaintiffs claimed that Mylan, as part of a "quid-pro-quo", agreed to similarly settle patent litigation involving a brand-name drug Teva manufactured and delay Mylan's generic version.
Teva and Pfizer both denied wrongdoing. Pfizer settled for $345 million last year Teva was not named as a defendant.
Separately, India’s Biocon Ltd announced Monday a $3.34 Billion deal for Viatris’ biosimilars business.