Mylan to Pay $96.5 Million to Settle Generic Provigil Claims

  • Accord is subject to approval by U.S. judge in Philadelphia
  • Suit claimed drugmaker conspired to delay generic version

Mylan NV agreed to pay $96.5 million to settle claims that the company conspired to delay a generic version of Cephalon Inc.’s Provigil drug in exchange for payment from the company.

The agreement, which is subject to approval by U.S. District Judge Mitchell Goldberg, was revealed in a Feb. 3 filing in federal court in Philadelphia.

The accord comes after more than a decade of litigation about the sleep-disorder drug.  A group of buyers filed suit in 2006, alleging Cephalon Inc., which Teva Pharmaceutical Industries Ltd. acquired in 2011, improperly delayed generic competition to Provigil.

"The settlement assures all class members that they will receive a substantial cash settlement payment now, and that the litigation against Mylan will be put to rest," according to the filing.

The drug buyers were defined as all persons or entities in the U.S. and its territories who bought Provigil in any form directly from Cephalon at any time from June 24, 2006 through Aug. 31, 2012. The group of buyers didn’t include large retailers, such as Rite Aid Corp. and CVS Caremark Corp. and Walgreen Co.

According to the terms of the settlement, Mylan will offer buyers their allocated share of the settlement fund, minus legal fees. The settlement will be paid even if the court doesn’t approve it for any reason other than that the settlement isn’t fair, reasonable or adequate.

The case is King Drug Company of Florence, Inc. v. Cephalon Inc., 06-cv-1797, U.S. District Court for the Eastern District of Pennsylvania, (Philadelphia.)

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