Three drug makers — including Teva Pharmaceutical (TEVA) and Endo International (ENDP) — agreed to pay nearly $70 million to the state of California to settle allegations of striking so-called pay-to-delay agreements that kept lower-cost generic versions of their medicines from entering the market.
In announcing the settlements, California Attorney General Xavier Becerra maintained the arrangement included the largest such settlement received by any state, as well as the only ones to secure an injunction against any future pay-for-delay agreements.
The settlements come amid increasing scrutiny of steps taken by drug makers to thwart competition in order to maintain profits. In recent years, the Federal Trade Commission and a growing number of lawmakers have cited pay-to-delay deals as a concern.
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