Home / Business and Economy / Takeda Loses $885M Over Drug Delay Scheme
Takeda Loses $885M Over Drug Delay Scheme
19 May
Summary
- Jury found Takeda liable for $885 million in damages.
- Takeda delayed generic Amitiza release via anticompetitive scheme.
- This is the first jury verdict against a drugmaker for pay-for-delay since 2013.
A U.S. jury in federal court in Boston determined on Monday that Takeda Pharmaceutical owes approximately $885 million in damages. The jury found Takeda liable for an anticompetitive scheme that delayed the release of a generic version of its constipation treatment, Amitiza, causing financial harm to purchasers and insurers.
This verdict came after lawsuits filed in 2021 by pharmacies, retailers, insurers, and health funds, who claimed they overpaid for the drug due to the alleged scheme. The trial focused on a 2014 settlement between Sucampo, Takeda's marketing partner for Amitiza, and generic drugmaker Par Pharmaceutical.
Under this settlement, Par agreed to delay bringing its generic version of Amitiza to market until January 2021, in exchange for a profit-sharing agreement. Plaintiffs argued this was an illegal "payoff" worth about $210 million, effectively delaying generic competition for six years. This trial represents the first time a drugmaker has been found liable by a jury in class-action litigation over alleged illegal reverse-payment agreements since the U.S. Supreme Court ruled in 2013 that such deals can violate antitrust law. The damages awarded could potentially triple under federal antitrust law.
