GSK, Teva Get Class Certification Vacated in Generic Drug Suit

GlaxoSmithKline PLC and Teva Pharmaceutical Industries Ltd. won’t face a direct purchaser class that accused them of conspiring to delay and suppress generic competition for the epilepsy drug Lamictal, the Third Circuit said Wednesday.

At issue is a “reverse payment agreement” in which GSK “paid” Teva to stay out of the market by promising not to launch its own authorized generic version. But for the agreement, Teva would have launched its generic sooner, and GSK would have started selling its authorized generic the same day Teva entered the market, the purchasers alleged.

The six-month delay drove up prices for both ...