AbbVie, Teva Must Face Distributor Class Over Delayed Generics

AbbVie Inc. and Teva Pharmaceuticals Inc. must face a certified class of pharmaceutical distributors who accuse them of conspiring to delay generic competition for the cholesterol drug Niaspan.

The antitrust suit is part of a consolidated multidistrict case proceeding in the U.S. District Court for the Eastern District of Pennsylvania. It alleges an unlawful “reverse payment” agreement between Kos Pharmaceuticals Inc., now an AbbVie subsidiary, and Barr Pharmaceuticals Inc., which Teva later acquired.

After Barr sought regulatory approval for its generic Niaspan, Kos sued it for patent infringement, then settled the case on terms that effectively paid Barr not to ...