HomeNewsBusinessCompaniesAstraZeneca, Ranbaxy prevail in Nexium antitrust trial

AstraZeneca, Ranbaxy prevail in Nexium antitrust trial

The US Federal Trade Commission estimates that pay-for-delay deals, in which a branded drugmaker pays a generic rival to stay off the market, cost consumers USD 3.5 billion each year.

December 06, 2014 / 14:52 IST
Story continues below Advertisement

A Massachusetts jury has found that an agreement between AstraZeneca Plc and Ranbaxy Laboratories Ltd to delay the launch of a generic version of AstraZeneca's heartburn drug Nexium was not anticompetitive.

The verdict, handed down Friday in federal court in Boston, is the first time a jury has decided such a case since the US Supreme Court ruled last year that so-called "pay-for-delay" settlements may run afoul of antitrust laws.

Story continues below Advertisement

The US Federal Trade Commission estimates that pay-for-delay deals, in which a branded drugmaker pays a generic rival to stay off the market, cost consumers USD 3.5 billion each year.

An attorney for the plaintiffs, which include drug wholesalers, retailers and insurers, could not be reached for comment. AstraZeneca and an attorney for Ranbaxy released statements saying they were pleased with the verdict.