How Much Could Generic Pharmas Have To Fork Over In Antitrust Lawsuit? - (Investor's Business Daily via NewsPoints Desk)

  • UBS analyst Navin Jacob estimated that Mylan and Teva could have $2.4 billion in combined liability in a price-fixing lawsuit in the US, Investor's Business Daily reported Tuesday.

  • At the midpoint, the analyst noted that Teva could pay $1.7 billion in damages, while Mylan may receive $656 million in penalties.

  • Last week, Heritage Pharmaceuticals admitted to fixing generic drug prices and agreed to pay a criminal penalty of $225 000, in addition to a fine of $7.1 million in a separate civil case.

  • "Heritage is cooperating with the [Department of Justice]," Jacob noted, adding "thus, it does not preclude the high end of our estimated drug price litigation charges range for Teva and Mylan."

  • Although Heritage could be excluded from all federal health care programmes for five years, Jacob predicted that Mylan and Teva will not receive a similar sanction.

  • "We think it would be unlikely that the DOJ would impose a penalty like this on a larger generic player like Teva and Mylan given the importance of these companies to the overall supply chain," the analyst remarked, continuing "note that Heritage in 2019 markets less than 50 products vs. 500-plus for Teva and Mylan."

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