By Mike Scarcella
(Reuters) – Hikma Pharmaceuticals has agreed to pay $50 million to settle a class action accusing the drugmaker of scheming to delay a generic version of Jazz’s blockbuster narcolepsy drug Xyrem, causing health plans to pay higher prices.
The proposed settlement filed on Wednesday in the San Francisco federal court resolved claims from drug buyers including the city of Providence, Rhode Island, and the New York State Teamsters Council Health and Hospital Fund.
The drug purchasers alleged an agreement between Hikma and Jazz to keep a generic version of Xyrem off the market violated U.S. antitrust law. In a separate settlement, Jazz said last month it will pay $145 million to resolve the claims against it. Both deals require approval by Chief U.S. District Judge Richard Seeborg.
Hikma general counsel Sam Park in a statement said the agreement “protects the company’s interests and provides clarity to our stakeholders.” The company has denied any wrongdoing.
Attorneys for the plaintiffs, in a court filing, called the settlement “the result of hard-fought and adversarial litigation.” They did not immediately respond to a request for comment.
Hikma was the remaining defendant in litigation that began with a series of lawsuits that were filed in 2020.
Xyrem, a central nervous system depressant, has been on the market since 2002, when it was manufactured by Orphan Medical. Ireland-based Jazz acquired Orphan in 2005.
The plaintiffs alleged Jazz illegally paid Hikma to keep a rival generic off the market longer than it otherwise would have been. They claimed Jazz raised the price of Xyrem by more than 800% between 2007 and 2014.
Hikma had U.S. regulatory approval for a generic version of Xyrem by 2017. That year, Hikma settled its lawsuit challenging Jazz patents.
Attorneys for the class said they would seek up to 33%, or about $65 million, of the total settlement fund of $195 million for legal fees.
The case is In re: Xyrem (Sodium Oxybate) Antitrust Litigation, U.S. District Court for the Northern District of California, No. 3:20-md-02966-RS.
For plaintiffs: Dena Sharp of Girard Sharp and Michael Buchman of Motley Rice
For Hikma: Jack Pace III of White & Case
Read more:
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Jazz, Hikma must face ‘reverse payment’ claims over narcolepsy drug
(Reporting by Mike Scarcella)
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