Impax Agrees to Pay $35M to Partially Settle Acne Drug Complaint

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By Fawn Johnson

Impax Laboratories Inc. has agreed to pay $35 million to settle antitrust claims with a class of people who bought its blockbuster acne drug Solodyn, bringing a portion of its four-year litigation to a close.

A jury trial began March 12 in which Impax is mounting a defense against big pharmacy chains like CVS Health Corp. and Walgreens Boots Alliance Inc. That class, separate from the customers who paid cash for Solodyn, alleges that Impax illegally agreed with Medicis Pharmaceutical Corp. to thwart competition by agreeing to delay a generic version of the acne drug.

Impax is the last defendant company remaining in the suit. Medicis’s parent, Valeant Pharmaceuticals Intl. Inc., settled with the big buyers for an undisclosed amount. In early March, Medicis also settled with direct buyers for $35 million and the class of “end payors” — health plans and pharmacies — for $23 million.

Other defendant companies Sandoz Inc. and Lupin Pharmaceuticals Inc. settled with all plaintiffs in November 2017.

The Impax settlement is subject to approval by the court. U.S. District Court for the District of Massachusetts Judge Denise Casper said in a March 12 order that she would grant preliminary approval of the deal.

The case is In re Solodyn Antitrust Litigation , D. Mass., No. 14-md-02503, partial settlement 3/12/18 .

To contact the reporter on this story: Fawn Johnson in Washington at fjohnson@bloomberglaw.com

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com

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