Lupin Settles Diabetes Drug Suit In U.S.
Lupin opted for an out-of-court settlement of litigation against its diabetes drug Glumetza.
Lupin Ltd. opted for an out-of-court settlement of litigation against its diabetes drug Glumetza in the U.S.
The drugmaker has decided to pay $150 million (about Rs 1,103 crore) to the Direct Purchaser Group and $98 million (Rs 721 crore) to the Retailer Opt-Out group, the two plaintiffs representing majority of claims against Lupin and its U.S. subsidiary Lupin Pharmaceuticals, Inc., according to an exchange filing.
The multiple antitrust class actions filed against Lupin and other stakeholders in the Northern District of California, U.S., the filing said, alleged that the 2012 settlement of patent litigation regarding the type-2 diabetes drug had delayed the availability of generic alternatives, causing consumers to pay higher prices for the drug. The prices witnessed a hike of nearly 800% in 2015, allowing Lupin to charge $44 (Rs 3,231) per tablet for its generic alternative instead of $4 (Rs 294).
Among other stakeholders against whom antitrust class actions were filed, Bausch Health Cos Inc and Assertio Therapeutics Inc have already settled the case.
The trial for this case was scheduled to begin in the U.S. courts on Oct. 4, 2021.
Shares of Lupin were trading 0.95% down as of 10:45 a.m. compared with a 0.13% gain in the Nifty 50.