Ranbaxy: Sun Pharma shelling out $485M to settle US antitrust case against generics giant

Sun Pharma has agreed to a big payout to settle claims of misconduct leveled against its Ranbaxy generics unit. Just ahead of a trial over long-simmering allegations that Ranbaxy had schemed to muscle ahead of rivals and hit the market with 3 exclusive knockoffs of some of the biggest medicines of the time, Sun has agreed to shell out $485 million to settle the class action suit, without admitting to the charges. A court filing from Sun notes: With a view to resolve this dispute and avoid uncertainty, the Company has agreed to enter a comprehensive settlement with these plaintiff groups for a total settlement amount of $485 million. The lawsuits accused Ranbaxy of including false information in its applications to manufacture generics of the antiviral drug Valcyte from Genentech, Novartis' Diovan for blood pressure and the popular acid reflux drug Nexium made by Pfizer. By landing the first approvals for these drugs, the suits maintain, Ranbaxy was able to gain 180 days of exclusivity on the US market, bagging a higher price as a result of the temporary monopoly. Not long after Sun bought Ranbaxy from Daiichi Sankyo in 2014 the Japanese company was hit with claims against the Indian generics giant. Ranbaxy was accused of falsely representing the quality of the drugs it made as well as its handling of compliance issues raised by the FDA. By making those false assertions, they were able to be first to file and win exclusivity - giving them an opportunity to charge more for the first knockoffs. In 2013 Ranbaxy agreed to pay $500 million - $150 million to cover a criminal fine and forfeiture with $350 million for civil claims - related to felony charges for making and selling adulterated drugs. And in 2017 Sun shelled out $150 million to cover the last of the litigation sparked by a pay-for-delay case involving Ranbaxy.