Drugmaker Sandoz reaches $275 million settlement to resolve antitrust case

Swiss drugmaker Sandoz has reached a settlement to resolve the antitrust case for generic drugs in the United States. The sum amounts to 275 million dollars, plus an escrow fund of another 265 million dollars to settle costs generated by the litigation.

This is the third settlement reached by Sandoz with the U.S. Department of Justice after the 2010 and 2021 cases, for which it also reached a financial settlement with the DOJ. The courts are still pending to approve the settlement in full. According to Sandoz's statement, payment of the agreed sum would be made before the end of this 2024.

However, the Swiss company does not take it for granted nor does it consider itself guilty of the accusations against it. This is reflected in its statement, which assures that "this settlement, which contains no admission of wrongdoing by Sandoz US, resolves all claims for damages from the end-payer class, which is generally comprised of certain consumers, insurers, health and welfare funds, employee benefit plans and other entities that paid for and reimbursed drug sales."

Separately, Sandoz will keep open other similar litigation in which it is listed as a defendant by various U.S. state and local governments. "Sandoz US continues to defend itself vigorously in those cases, and has raised a number of defenses, including whether downstream purchasers were actually harmed by the alleged conduct," the statement asserts. For these cases, which are also based on U.S. antitrust rules, the drugmaker has provided for a fund of up to $265 million.

In addition to its U.S. litigation, Sandoz also faces charges of the price fixing of generic drugs in Canada.