Teva reaches $925,000 settlement to resolve drug price-fixing claims

Teva Pharmaceuticals has reached a $925,000 settlement in the US after claims were brought against the company alleging involvement in drug price-fixing.

In 2019, a wide-ranging lawsuit was filed in the US by 44 states – including Mississippi where the settlement has taken place – claiming prices were fixed for dozens of widely-used generic medicines.

Teva was among a group of 20 pharma companies cited in the lawsuit, alongside Novartis’ Sandoz Unit, Mylan, Pfizer and others.

The legal action was filed by Connecticut Attorney General William Tong and follows a five-year investigation into the alleged conspiracy to fix prices and allocate markets for more than 100 different generic drugs, including those for heart disease, diabetes and cancer.

The allegations include unlawfully discouraged competition, elevated prices and an ingrained culture of collusion.

Among the accused, Teva allegedly substantially raised the prices of 112 generic drugs by as much as 1,000% and coordinated prices with the producers of 88 additional generic medicines.

Then, last year, the US Department of Justice (DoJ) charged Teva for conspiring with competitors in a generic drug price-fixing probe.

At the time, a person familiar with the matter said the charges came after Teva refused to agree to a settlement and admit any wrongdoing.

Following the settlement, Teva said under the terms of the agreement with Mississippi Attorney General Lynn Fitch, it did not admit any guilt, wrongdoing or liability in the price-fixing case.

“We are very pleased to put these [price-fixing] claims by the state behind us, and we believe the modest settlement amount reflects our position on the lack of evidence for the allegations against us, which we continue to deny,” said Kelley Dougherty, a spokesperson for Teva.

Although the agreement makes Mississippi the first state to exit the broader lawsuit, more than 50 states and territories will continue with the complaint, Elizabeth Benton – a spokeswoman for Connecticut Attorney General William Tong – told Reuters.