Pfizer Settles Remaining Effexor XR Antitrust Claims for $25.5 Million

Pharmaceutical giant Pfizer has agreed to a $25.5 million settlement to resolve claims related to its predecessor Wyeth’s alleged collusion with competitor Teva. The settlement aims to address accusations of conspiring to delay the release of a cheaper generic version of the popular antidepressant Effexor XR. This payout follows a $39 million settlement revealed earlier this month.

Lawyers representing the plaintiffs filed a motion on Friday, seeking approval from a New Jersey federal judge for the proposed settlement. The settlement funds, if approved, would primarily benefit a class of “indirect purchasers” who bought Effexor XR through intermediaries rather than directly from Wyeth. Notably, the proposed allocation designates 78% of the funds to third-party payors, such as insurance companies and employee health plans, with the remaining 22% slated for individual consumers. Plaintiffs’ attorneys are set to receive approximately $8.7 million, representing 34% of the settlement amount.

Related: Pfizer’s Wyeth to Pay $39 Million to Settle Antitrust Claims on Effexor XR

While Pfizer has not admitted wrongdoing, the company stated in a release that it views the settlement as fair, reasonable, and the most effective means to conclude the litigation. Lead attorney for the plaintiffs, James Cecchi, opted not to provide further commentary on the matter.

The preceding $39 million settlement, which was also subject to judicial approval earlier in the month, pertained to a class of purchasers who bought Effexor XR directly from Wyeth, including drug wholesalers.

Pending judicial approval, these settlements would bring an end to over 12 years of legal battles revolving around allegations that Wyeth’s collaboration with Teva violated U.S. antitrust laws. Notably, Teva remains excluded from the settlement agreements, indicating that legal proceedings against the company will persist.

Source: Reuters