Teva To Pay $35M In Suit Over Delayed Generic Inhalers

By Editorial Team

Teva Pharmaceuticals has agreed to pay $35 million to settle allegations from a group of union healthcare funds that the company engaged in tactics to delay generic competition for its QVAR asthma inhalers. The settlement comes after a motion for preliminary injunction was filed in Massachusetts federal court.

The coalition of union healthcare funds accused Teva Pharmaceuticals of scheming to prevent generic versions of its QVAR asthma inhalers from entering the market, thereby maintaining a monopoly and inflating prices for consumers.

The lawsuit alleged that Teva engaged in anticompetitive behavior by filing sham citizen petitions with the Food and Drug Administration (FDA) to delay the approval of generic versions of QVAR. These petitions were purportedly used to create regulatory hurdles for competitors, ultimately keeping the generic inhalers off the market.

As part of the settlement, Teva Pharmaceuticals will pay $35 million to resolve the claims brought by the union healthcare funds. The agreement also includes provisions for Teva to cease engaging in anticompetitive practices that hinder the entry of generic competitors into the market.

Several law firms were involved in representing the union healthcare funds in this case, including Berman Tabacco, Glancy Prongay, Hilliard Shadowen, Kirkland & Ellis, Korein Tillery, Rupp Pfalzgraf, Sperling Kenny, and Steyer Lowenthal.

The lawsuit was filed in the U.S. District Court for the District of Massachusetts before Judge Nathaniel M. Gorton.

This settlement highlights the importance of fair competition in the pharmaceutical industry and the consequences that companies may face for engaging in anticompetitive practices.