Sun Pharma's US arms to pay $85 million over antitrust litigation

Sun Pharmaceutical Industries said two of its US-based subsidiaries have inked settlement pacts with the direct purchaser plaintiffs in the matter of generic pharmaceuticals pricing antitrust litigation in the US and will pay a total of $85 million for the full release of claims against them.

"Taro Pharmaceuticals U.S.A., Inc and Sun Pharmaceutical Industries, Inc. have signed settlement agreements with the Direct Purchaser Plaintiffs in the In re Generic Pharmaceuticals Pricing Antitrust Litigation that has been taking place in the Eastern District of Pennsylvania, the US for some time," Sun Pharma said in a regulatory filing.

Under the terms of the settlement agreements, the subsidiaries will make an aggregate payment amounting to a combined total of $85 million in exchange for a full release of all claims asserted against them in the direct purchaser action by the settlement class members, it added.

The settlement payment amounts will be reduced by $10 million if the direct purchasers that opt out of the putative class collectively account for 20 per cent or more of Taro's and Sun Pharmaceutical Industries, Inc's aggregate dollar sales of the generic pharmaceutical products at issue in the direct purchaser action, Sun Pharma said.