Jazz Pharmaceuticals Reaches $145M Antitrust Deal

Jazz Pharmaceuticals has agreed to a $145 million settlement to address longstanding antitrust allegations related to its blockbuster narcolepsy treatment, Xyrem.

The pharmaceutical company reached a deal this week with a group of indirect purchasers who accused Jazz of engaging in an anti-competitive “pay-for-delay” scheme, Fierce Pharma reported. The plaintiffs alleged that Jazz had struck arrangements designed to delay the market entry of lower-cost generic versions of Xyrem, keeping prices high for consumers and insurers.

The lawsuit, which was consolidated into a multidistrict litigation (MDL) case in a North Carolina federal court back in 2020, centers around Jazz’s patent settlements with several generic drugmakers. Among them is Hikma Pharmaceuticals, which was granted the rights to release an authorized generic version of Xyrem in early 2023, following a 2017 agreement with Jazz.

Under that deal, Hikma was allowed to distribute its version of Xyrem through Jazz’s restricted distribution system—initially developed to control the drug’s use due to its potential risks—while paying Jazz a royalty on sales. Plaintiffs in the antitrust suit claimed this arrangement effectively stifled real generic competition and enabled Jazz to maintain elevated pricing, per Fierce Pharma.

Related: Jazz Pharmaceuticals Reaches $145 Million Settlement Over Alleged Efforts to Block Generic Xyrem

Jazz, for its part, has denied any wrongdoing. In a recent filing with the Securities and Exchange Commission, the company emphasized that it “remains confident” in its legal position and continues to believe that its patent agreements were “pro-competitive.” Nevertheless, Jazz said resolving the matter ahead of trial was “in its best interests.” The lump-sum payment will be funded through existing cash reserves and remains subject to court approval.

The settlement is expected to resolve most of the claims in the MDL, Fierce Pharma noted. Other players involved in the case have already exited; generic manufacturers Amneal and Lupin reached a separate settlement earlier, contributing $3.4 million to a fund supporting ongoing litigation against Jazz and Hikma.

Source: Fierce Pharma