Class Action News

Rite Aid Sues Novartis, Endo Over Generic Delay

Dec. 18, 2018, 4:26 PM

Drugmakers Novartis, Endo, and Par Pharmaceutical conspired to exclude generic competition to a brand-name hypertension drug made by Novartis, Rite Aid Corp. says in a complaint filed Dec. 17.

Par and Endo agreed not to compete by releasing a generic version of Novartis’s drug Exforge, and Novartis agreed to hold off on releasing its own generic, the suit filed in the U.S. District Court for the Southern District of New York alleges.

This type of deal is called “pay-for-delay.” It raises prices for drug buyers and can violate the antitrust laws.

A similar complaint was filed May 17 by Puerto Rican pharmacy Drogueria Betances on behalf of a class of direct buyers of the drugs.

Rite Aid argues the class complaint has tolled the statute of limitations on its claims. The tolling allows Rite Aid’s suit to include purchases of Exforge and its generics since May 2014, it argues.

The pharmacy seeks a permanent injunction and treble damages.

Novarits declined to comment on the suit. The other drugmakers didn’t immediately respond to requests for comment.

Hangley Aronchick Segal Pudlin & Schiller represented Rite Aid.

The case is Rite Aid Corp. v. Novartis Pharm. Corp., S.D.N.Y., No. 18-4361, filed 12/17/18.

To contact the reporter on this story: Perry Cooper in Washington at pcooper@bloomberglaw.com

To contact the editors responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com; C. Reilly Larson at rlarson@bloomberglaw.com

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