Indivior to pay £315m to end final Suboxone monopoly lawsuits
Drugmaker Indivior on Monday agreed to pay $385m (£315m) to settle lawsuits brought by drug wholesalers on claims it illegally suppressed generic competition for its opioid addiction treatment Suboxone.
The company’s London-listed shares rose six per cent in early trading as the latest settlement could mark the end of long-running litigation relating to Suboxone – once Indivior’s blockbuster opioid addiction treatment.
Indivior in June agreed to pay $102.5m to settle a lawsuit by dozens of U.S. states regarding the claims. In August, it agreed to pay $30m to settle a class action lawsuit by health plans.
The agreement with the wholesalers that bought the treatment directly from the Virginia based company will mark the end of the multi-district litigation relating to Suboxone once the court approves it, Indivior said.
“The resolution of this litigation, which was filed over a decade ago, provides greater certainty for all Indivior stakeholders,” CEO Mark Crossley said in a statement.
The settlement requires approval by the United States District Court for the Eastern District of Pennsylvania. Indivior expects the $385m to be paid next month.
Suboxone was approved for U.S. sale in 2002, with Indivior holding exclusive rights to sell the treatment in tablet form until 2009.
The lawsuit filed by health plans and drug wholesalers claimed Indivior switched to an oral film version of Suboxone from a tablet version to extend its monopoly, just as generic manufacturers were poised to sell their own lower-cost tablets.
The trial, which was scheduled to begin on October 30, will be cancelled.
Indivior said it will take a charge of $228m in the third quarter, above the current remaining provision of $157 million, which will be excluded from adjusted earnings.
Reuters – by Yadarisa Shabong