The US units of Ranbaxy Laboratories and Teva Pharmaceutical Industries have settled claims with the New York Attorney General (AG) that an agreement between the two drugmakers unlawfully restricted competition. Teva and Ranbaxy will together pay $300,000 to the New York state and have agreed to refrain from similar agreements in the future.
As per the settlement, the two generic drug makers will end a 2010 agreement of not challenging each other?s rights to sell certain drugs exclusively in the US.
?Agreements between the drug manufacturers to protect each other?s market positions violates fundamental principles of antitrust law, and can lead to higher drug prices,? AG Eric Schneiderman said.
He said this case represents the latest application of recent legal precedent arising out of challenges to ?pay for delay? agreements between brand name and generic pharma manufacturers.
The so-called ?pay-for-delay? deals where brand-name companies pay generic rivals not to sell their versions of a drug at a fraction of the original price caught the attention of regulators because it raises consumer bills and public healthcare costs.
