The Basel-based pharmaceutical company has been accused of delaying the US launch of counterfeit products of the high blood pressure drug Exforge. The deal with pharmacy operators, among others, must finally be approved by a federal judge in New York, as Novartis announced Thursday night in the US.
According to the pharmaceutical company, with the agreement, Novartis can clear all outstanding receivables in this regard. The lawsuit stems from a 2011 licensing agreement between Novartis and generic drug maker Par Pharmaceutical to release a generic version of Exforge.
As can be seen in the most recent Novartis annual report, as of 2018, Novartis has been sued by several parties, both individual and class actions, that “directly and indirectly bought” Exforge. The pharmaceutical company denied the allegations. The plaintiffs include major US pharmacy chains such as CVS Health Corp, Rite Aid Corp and Walgreens Boots Alliance, Reuters news agency reported.
Exforge is used to treat high blood pressure. Before counterfeit products hit the market, Novartis’ annual sales of the drug in the US were more than $400 million, Reuters news agency previously citing court documents.
Novartis stock was initially unaffected by the news on the Swiss stock market on Thursday. Novartis shares fell 0.6 percent to CHF 84.20 shortly after the exchange opened. However, they are about to give way with the overall market – the blue chip index SMI is simultaneously losing 0.5 percent.
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