Keystone-SDA
Sandoz will pay $275 million to settle a dispute over generic treatment prices. The Basel group ensures that these payments will have no impact on its financial objectives, these being cleared of any element deemed non-recurring.
This content was published on
December 17, 2024 – 08:10
(Keystone-ATS) Sandoz Inc and Fougera Pharmaceuticals Inc, both subsidiaries of the Rhenish generic drug specialist, reached an agreement with the plaintiffs before the Eastern District Court of Pennsylvania, according to a press release from the laboratory published Tuesday.
The Swiss company will pay 275 million dollars (246.1 million francs) to close the dispute opposing it to consumers, insurers, health funds, social protection and employee allowances and “other entities having paid and reimbursed” for medications.
The agreement, which must still be approved by the courts, “resolves all requests for compensation” from the plaintiffs and “does not constitute an admission of guilt on the part of Sandoz US,” the group stressed.
To face other ongoing litigation in the United States, notably for anti-competitive practices, Sandoz, which “continues to defend itself vigorously”, has set aside 265 million dollars.
In Canada too
Sandoz also faces a consolidated lawsuit in Ontario, Canada, over accusations of unlawful price fixing in the Canadian generic drug market, which the group “vigorously disputes.”
The former Novartis subsidiary assured that the settlement before the American courts had no impact on its financial objectives for the current year and the medium term.
At the end of October, management said it was targeting growth of 10% in net sales and an adjusted gross operating margin (Ebitda) of around 20% for the whole of 2024. In the medium term, the firm is targeting revenue growth of around 5% and an adjusted Ebitda margin of 24% to 26% by 2028.
At the end of February, Sandoz had already reached an agreement in the United States to end a competition law dispute, paying the plaintiffs $265 million. In 2020, an agreement was reached with the US Department of Justice (DoJ) resulting in Sandoz paying nearly $200 million.
