Pfizer, Ranbaxy Sued Over Delay Of Generic Lipitor

Law360 (May 22, 2020, 6:25 PM EDT) -- Pfizer Inc. and Ranbaxy Inc. were hit Friday with a proposed class action alleging drug wholesalers overpaid billions of dollars for the high-cholesterol medicine Lipitor because of a purported pay-for-delay scheme to stifle generic competition.

The complaint by Puerto Rico-based health care products distributor César Castillo LLC targets a "reverse payment" arrangement in which Pfizer paid Ranbaxy to hold off on rolling out its generic version of Lipitor even beyond the expiration of Pfizer's patent, forcing direct purchasers to pay for brand-name atorvastatin calcium longer than necessary.

The conduct violated federal antitrust laws against monopolies and restraint of trade, according to...

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