A Boston jury found Takeda Pharmaceutical liable for $885 million in damages for an anticompetitive pay-for-delay scheme to block a generic version of its constipation drug Amitiza. The verdict is the first of its kind in a class-action trial since a 2013 Supreme Court ruling, and the damages could be tripled under federal antitrust law.
A U.S. jury ordered Takeda Pharmaceutical to pay $885 million in damages after finding the company engaged in an anticompetitive scheme to delay the generic version of its constipation drug Amitiza.
Lawyers for the plaintiffs argued the 2014 settlement between Takeda's partner and generic drugmaker Par Pharmaceutical constituted an illegal payoff worth about $210 million, which delayed generic competition by six years. The plaintiffs included pharmacies, insurers, and retailers like CVS and Walgreens who claimed they overpaid for the drug.
The case concerned Amitiza, a drug developed by Sucampo Pharmaceuticals and marketed by Takeda. In 2012, Par Pharmaceutical sought to launch a generic version, leading to a patent infringement lawsuit from Takeda and Sucampo. The resulting 2014 settlement delayed Par's generic launch until 2021. While the overall verdict was for $885 million, law firm Hagens Berman announced a $474 million award for the direct purchaser class it represented.
This trial is the first time a drugmaker has been found liable by a jury in a class-action lawsuit over so-called "pay-for-delay" agreements since a 2013 U.S. Supreme Court decision that opened the door for such challenges. Under federal antitrust law, the damages awarded by the jury could be automatically tripled, potentially exposing Takeda to a liability of over $2.6 billion.
The verdict sets a significant precedent for pending "pay-for-delay" litigation against other pharmaceutical companies. Investors will now watch for the final judgment from the court and the inevitable appeals process that will follow.
This article is for informational purposes only and does not constitute investment advice.
