Novartis Settles Antitrust Cases Related To Generic Entry For Hypertension Drug

Novartis AG NVS will pay $245 million to end antitrust litigation accusing the company of trying to delay the U.S. launch of generic versions of its Exforge, which treats hypertension to lower blood pressure and reduce the risk of strokes.
CVS Health Corp CVS, Kroger Co KR, Rite Aid Corp RAD, and Walgreens Boots Alliance Inc WBA are among the plaintiffs in the civil litigation, which began in 2018.
The litigation stemmed from a 2011 licensing agreement between Novartis and Endo International Plc's ENDPQ Par Pharmaceutical unit that accused the parties of entering an illegal "reverse payment" agreement to delay launches of generic versions of Exforge for two years after patent expiry.
Related: Novartis Fails To Prevent Generic Competition For Its Blockbuster Multiple Sclerosis Drug.
Novartis agreed not to compete with Par by launching its own Exforge generic during the 180-day exclusivity period following Par's entry into the market.
Citing court papers, Reuters notes that Novartis's annual U.S. sales of brand-name Exforge exceeded $400 million before generic versions were sold.
Price Action: NVS shares are up 0.47% at $91.27 during the premarket session on the last check Thursday.