Sun Pharma settles litigation against Diovan, Nexium, Valcyte

The company has agreed to enter a comprehensive settlement with plaintiff groups for a total settlement amount of USD 485 million.

Published On 2022-03-25 06:55 GMT   |   Update On 2022-03-25 10:45 GMT
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Mumbai: Sun Pharmaceutical Industries Ltd. and one of its U.S. based subsidiaries, Ranbaxy, Inc. (hereinafter, collectively referred to as the "Company"), have signed a Binding Term Sheet with two plaintiff groups, the Direct Purchaser and End-Payor Plaintiffs, collectively resolving all of the claims against the Company, in the matter In re Ranbaxy Generic Drug Application Antitrust Litigation that has been ongoing in the U.S. District Court for the District of Massachusetts (USA) for several years. 

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In the matter of In re Ranbaxy Generic Drug Application Antitrust Litigation, there were multiple antitrust, consumer protection, and civil RICO class actions consolidated in the District of Massachusetts, (USA) against the Company in connection with generic Diovan, a drug for the treatment of hypertension; generic Nexium, a drug for the treatment of gastroesophageal reflux disease and peptic ulcers; and generic Valcyte, a drug for the treatment of cytomegalovirus disease. 

Read also: Ranbaxy Case: Malvinder Singh furnishes details of Rs 1472.72 crore loan given to Dhillon family to court 

The actions/claims relate to alleged conduct by Ranbaxy Laboratories Ltd. and its U.S. subsidiary prior to its acquisition by Sun Pharmaceutical Industries Ltd. The Company has disputed the claims of the plaintiffs and defended these matters vigorously. "With a view to resolve this dispute and avoid uncertainty, the Company has agreed to enter a comprehensive settlement with these plaintiff groups for a total settlement amount of US$ 485 million (US Dollar Four Hundred and Eighty Five million)," the company said in a BSE filing.

As a consequence of the Binding Term Sheet, the Company shall execute the necessary settlement agreements, which, upon approval by the U.  S. Court, will ensure that all allegations against the Company, which it has denied, not conceded and not admitted, do not survive and stand extinguished.   
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