Glenmark To Pay $7 Million To Settle Lawsuits With Three Entities In US

Glenmark Pharmaceuticals on Monday said it will pay $7 million to three entities to settle lawsuits in the US related to generic drugs. In a regulatory filing, the Mumbai-based drug maker said that in 2023 it had settled with three plaintiff groups referred as the Direct Purchaser Plaintiffs, the Retailer Plaintiffs, and the End-Payor Plaintiffs.

Four End-Payor Plaintiffs, Humana Inc, Centene, Kaiser Foundation Health Plan, Inc, and United Healthcare Services, Inc opted out of the 2023 settlements, it said.

The four lawsuits, which included claims related to both generic Zetia and Vytorin, were subsequently remanded to the jurisdictions in which they were originally filed.

"With a view to resolve this dispute and avoid uncertainty, Glenmark has agreed to enter into a settlement with three plaintiffs, Humana, Centene and Kaiser, for a total of $7 million," the drug firm said.

The settlement makes clear that Glenmark denies each and every one of the allegations against it and the settlement is not on the basis of the drugmaker having conceded or admitted any liability or illegality, it added.

Glenmark said it along with subsidiary GlenmarkPharmaceuticals Inc., USA faced multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia, US in connection with generic Zetia, a drug for the treatment of cholesterol.

Four of those lawsuits also included claims related to Vytorin, a Zetia combination 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.

Glenmark and Merck disputed these claims and defended these matters vigorously. Glenmark shares were trading 2.21% up at Rs 1,328.95 apiece on BSE.