Glenmark Pharma to pay $87.5 Mn to settle lawsuits in USA

Glenmark Pharmaceuticals Ltd has agreed to settle multiple antitrust and consumer protection lawsuits, including a class action, which were consolidated in the Eastern District of Virginia, U.S. against the Company and its subsidiary Glenmark Pharmaceuticals Inc., USA. The Company has agreed to enter settlements for a total amount of US$ 87.5mn, payable over two financial years.

The Company and its subsidiaries are involved in legal proceedings, which are normal to their business. Often, these litigations are resolved through settlement agreements with the plaintiffs.

There were multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia, U.S. against the Company and its subsidiary Glenmark Pharmaceuticals Inc., USA, in connection with generic Zetia®, a drug for the treatment of cholesterol.

The lawsuits alleged that in 2010, Glenmark entered an anticompetitive agreement to settle patent infringement litigation involving a patent related to ezetimibe (the active ingredient in Zetia) with Schering Corporation and MSP Singapore Company LLC. In the antitrust and consumer protection litigation, the Company was named as a defendant along with Schering Corporation, MSP Singapore Company LLC, Merck & Co., Inc., Merck Sharp & Dohme Corp., now known as Merck Sharp & Dohme LLC, and Schering-Plough Corp. (hereinafter referred to collectively as “Merck”). The Company and Merck have disputed these claims and defended these matters vigorously. The trial for this case began on April 19, 2023 in the U.S. courts.

Three plaintiff groups collectively representing all of the claims against the Company and Merck are referred to as the Direct Purchaser Plaintiffs, the Retailer Plaintiffs, and the End-Payor Plaintiffs. With a view to resolve this dispute and avoid uncertainty, the Company has agreed to enter settlements with all three plaintiff groups, for a total amount of US$ 87.5mn, payable over two financial years. Under these settlements, the Company must pay an amount of US$ 48mn (US Dollar Forty Eight million) to the Direct Purchaser Plaintiffs, US$ 25.5mn (US Dollar Twenty Five Point Five million) to the Retailer Plaintiffs, and US$ 14mn (US Dollar Fourteen million) to the End-Payor Plaintiffs, in accordance with the separate agreements entered into with each of them. The settlements will make clear that the Company denies each and every one of the allegations against it and the settlements are not on the basis of the Company having conceded or admitted any liability or illegality.