Sun Pharma Must Face Antitrust Suit Over Nexium, Diovan Generics

Sun Pharmaceutical Industries Ltd. must face a multidistrict lawsuit over its alleged scheme to corner the market for generic versions of three major drugs, a Boston federal judge ruled, though he trimmed some of the suit’s state law claims.

The proposed class action alleges racketeering and violations of antitrust and consumer laws by Sun, the world’s largest specialty pharmacy, and its subsidiary Ranbaxy Inc. It accuses them of fraudulently submitting bogus or missing data in applications to market generic versions of the reflux drug Nexium, the blood pressure drug Diavan, and the antibiotic Valcyte.

The move’s purpose was allegedly to ...