With AbbVie and Allergan almost ready to wrap up their $63 billion megamerger, both drugmakers are looking to clear any outstanding accounts before the deal closes. And Allergan just agreed to fork over $300 million to resolve one of them.
On the eve of a Monday trial, the company agreed to settle pay-for-delay claims against two of its businesses—Warner Chilcott and Watson Pharmaceuticals. For $300 million and no admission of wrongdoing, Allergan avoids a public trial and a potentially protracted legal wrangle.
Filed by purchasers of Loestrin 24 Fe and Minastrin 24 Fe, the antitrust suits claimed Warner paid off Watson and another generics maker, Lupin Pharmaceuticals, to delay launching cheaper copycats of those two contraceptive pills.
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Warner Chilcott also allegedly used a false patent as a basis for “sham lawsuits” against generic manufacturers of Loestrin 24 and switched the market from Loestrin to Minastrin––”a nearly identical product,” according to the lawsuit––in an effort to get doctors to prescribe the newer drug.
In May, Lupin agreed to settle its end of the suit, reaching a $1 million deal with the plaintiffs to bow out.
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