Teva and Cephalon Lose Appeal Against $60 Million Fine in Pay-for-Delay Scheme
October 19, 2023
Teva and its subsidiary Cephalon have lost their appeal against more than $60 million in fines imposed by the European Commission over a pay-for-delay scheme involving the sleep disorder drug Provigil. In 2005, Cephalon began litigation against Teva for creating a generic drug version in the UK. The companies settled, with Teva agreeing to delay its generic entry in exchange for payments from Cephalon. The European Commission classified this as a reverse payment or pay-for-delay deal, which is considered anti-competitive. Despite Teva and Cephalon’s appeal, a European court has upheld the fines. Teva, which subsequently acquired Cephalon in 2011, was also involved in a similar dispute in the US in 2015.
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[Source: Endpoints, October 19th, 2023]
