July 16, 2019

Loestrin end payors on Monday moved for preliminary approval of their $1 million settlement with Lupin Pharmaceuticals to resolve their portion of litigation accusing the company of working with another pharmaceutical duo to sideline generic alternatives to the widely used birth control drug.

A host of end payors such as retailers, drug wholesalers, insurance companies and other drug purchasers are suing Warner Chilcott and Watson Pharmaceuticals in Rhode Island federal court for allegedly cutting a decade-old deal that drove Loestrin rivals off the market, allowing Warner Chilcott to keep demanding a premium for its brand-name contraception.

Lupin had been a part of the litigation but cut a deal with the end payors in May to escape the suit, although details of the settlement were not made public until Monday. According to the proposed settlement, Lupin will put $1 million into a settlement fund that will be distributed among the end payors. However, the company denies any allegations of unlawful conduct.

. . .

According to all three sets of Loestrin buyers, Warner Chilcott, Watson and Lupin crafted agreements between 2009 to 2010 that kept generic versions of Loestrin off the market, allowing Warner Chilcott to keep prices for its brand-name drug artificially high.

The purchasers said those deals gave the Loestrin-maker too much market power, which they believe was shown by the drugmaker's ability to sell Loestrin for far more than the competitive price of the drug.

. . .

The end payors are represented by Hilliard & Shadowen LLP, Miller Law LLC, Motley Rice LLC, and Cohen Milstein Sellers & Toll PLLC.

The complete article can be viewed here.