Four “pay-for-delay” agreements that Cephalon entered into with separate generic drug manufacturers eight years ago don’t establish a conspiracy among the companies, a federal judge has ruled. In the agreements, Cephalon paid a “substantial amount of money” to the generic companies, U.S. District Judge Mitchell S. Goldberg of the Eastern District of Pennsylvania said, and the companies agreed to enter the market for a lucrative narcolepsy drug in April 2012. The agreements were made in late 2005 and early 2006.
An unrelated generic drug company, Apotex, along with direct purchasers and end payors, brought an antitrust suit alleging that Cephalon and the four generic drug companies—Teva Pharmaceuticals, Ranbaxy Laboratories, Mylan Pharmaceuticals and Barr Laboratories—illegally colluded to close the market.
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