Antitrust Law Daily Wrap Up, ANTITRUST—D. Mass: Nexium purchasers recover $8.8M in expenses in pay-for-delay suit, (Oct 6, 2015)
Law Firms Mentioned:Budd Larner PC | Covington & Burling | Garwin Gerstein & Fisher LLP | Hagens Berman Sobol Shapiro LLP | Hopgood, Calimafde, Kalil, Blaustein & Judlowe | Kirkland & Ellis LLP | Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC | Venable LLP | Wexler Wallace LLP | Williams & Connolly LLP
Organizations Mentioned:AstraZeneca LP | Berger & Montague, PC | Covington & Burling, LLP | Dr. Reddy's Laboratories | Dr. Reddy's Laboratories Ltd. | Dr. Reddy's Laboratories, Inc. | Dr. Reddys Laboratories Ltd. | Hagens Berman Sobol Shapiro, LLP | Kirkland & Ellis, LLP | Mintz Levin Cohn Ferris Glovsky & Popeo, PC | Ranbaxy Inc. | Ranbaxy Laboratories Ltd. | Ranbaxy Laboratories, Ltd. | Teva | Teva Pharmaceuticals | Teva USA, Inc. | Venable, LLP | Wexler Wallace, LLP | Williams & Connolly, LLP
By Greg Hammond, J.D.
The federal district court in Boston has approved over $8.8 million in reimbursements for expenses incurred in the prosecution of claims that Teva Pharmaceuticals violated federal and state antitrust laws, as well as state consumer protection laws, by entering into pay-for-delay settlement agreements with AstraZeneca AB—the manufacturer of the brand name drug Nexium. In addition, the court granted incentive awards to direct purchaser class representatives in the amount of $50,000 each (In re Nexium (Esomeprazole) Antitrust Litigation, October 5, 2015, Young, W.).
AstraZeneca manufactures Nexium, a proton pump inhibitor containing esomeprazole magnesium, prescribed to treat heartburn. The company holds several patents relating to the drug. In 2005, generic drug maker Ranbaxy Pharmaceuticals, Inc. filed an Abbreviated New Drug Application with the U.S. Food and Drug Administration, seeking to market a generic version of Nexium. Teva and Dr. Reddy’s Laboratories, Ltd. shortly thereafter followed suit. AstraZeneca responded by filing patent infringement suits against the three generic manufacturers and later entered into settlement agreements ending the three suits and suspending the entry of generic Nexium into the market.
Teva previously agreed to pay $24 million to settle end-payor and direct purchaser claims that the pharmaceutical company entered into unlawful pay-for-delay agreements with AstraZeneca.
The court has now granted: (1) direct purchaser class plaintiffs’ counsel over $3.6 million for reimbursement of expenses incurred; (2) individual retailer plaintiffs’ counsel over $2.6 million for expenses incurred; (3) end-payor class plaintiffs’ counsel over $2.5 million for expenses incurred; (4) nearly $6,000 to cover unpaid notice expenses; (5) nearly $1.5 million to cover end-payor class administrative and notice expenses; (6) incentive awards of $50,000 to each of the five direct purchase class representatives; and (7) service awards of $5,000 to each of the ten end-payor class representatives.
The case is MDL No. 2409.
Attorneys: Bruce E. Gerstein (Garwin Gerstein & Fisher LLP), Thomas M. Sobol (Hagens Berman Sobol Shapiro LLP) and David F. Sorensen (Berger & Montague, PC) for Direct Purchaser Plaintiffs. Kenneth A. Wexler (Wexler Wallace LLP) for End-Payor Class. Ajay Kayal (Budd Larner PC) and Alan H. Pollack (Hopgood, Calimafde, Kalil, Blaustein & Judlowe) for Dr. Reddy's Laboratories Ltd. and Dr. Reddy's Laboratories, Inc. Ashley E. Bass (Covington & Burling) and Benjamin M. Greenblum (Williams & Connolly LLP) for AstraZeneca LP. Lisa Jose Fales (Venable LLP) for Ranbaxy Laboratories, Ltd. and Ranbaxy Inc. Adam L. Sisitsky (Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC) and Jonathan D. Janow (Kirkland & Ellis LLP) for Teva USA, Inc.
Companies: Dr. Reddy's Laboratories Ltd.; Dr. Reddy's Laboratories, Inc.; AstraZeneca LP; Ranbaxy Laboratories, Ltd.; Ranbaxy Inc.; Teva USA, Inc.
Cases: Antitrust MassachusettsNews