In a high-stakes twist in the pharmaceutical legal arena, Jazz Pharmaceuticals has agreed to shell out a staggering $145 million to settle claims that it orchestrated an anticompetitive scheme with rival Hikma Pharmaceuticals to delay the launch of cheaper generic versions of its lucrative narcolepsy drug, Xyrem.
The settlement, disclosed Tuesday in a U.S. Securities and Exchange Commission Form 8-K, marks a dramatic turning point in long-running multidistrict litigation that alleged Jazz used “pay-for-delay” tactics to freeze competitors out of the market — a strategy critics liken to keeping a velvet rope around a monopoly.
The Deal: A $145M Exit from a Legal Quagmire
Jazz revealed that it reached a preliminary settlement agreement with a proposed class of indirect Xyrem purchasers — entities that either paid for or reimbursed costs of the drug — in select states. The deal would cover all claims against Jazz concerning its past patent litigation settlements with generic drugmakers.
The pharmaceutical giant, based in Ireland, maintains its denial of any wrongdoing, and the settlement is still subject to court approval.
