Sandoz Inc. has agreed to a $450 million settlement with 43 U.S. states and territories, alongside a separate $28.5 million agreement with indirect resellers, to resolve long-running generic drug price-fixing allegations. The company will pay $400 million over seven years starting in 2027, plus $50 million to states that settled earlier. Sandoz admits no wrongdoing, and the deals resolve all remaining U.S. government claims without impacting its 2026 financial guidance.
Sandoz $450 million state settlement
- ▪Sandoz Inc. entered into a $450 million settlement agreement with 43 United States states and territories to resolve litigation over alleged anti-competitive conduct in the generic medicines market.
- ▪The $450 million settlement is conditioned upon approval by all of the litigating United States states and territories.
Generic drug price-fixing allegations
- ▪The price-fixing allegations against Sandoz Inc. center on conduct that occurred between 2009 and 2019.
- ▪Sandoz Inc. was accused of engaging in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic prescription drugs.
Seven-year payment structure
- ▪Under the settlement terms, Sandoz Inc. will pay $400 million over seven years starting in 2027.
- ▪Sandoz Inc. will pay an additional $50 million to states that settled related generic drug claims earlier.
Indirect reseller class settlement
- ▪Sandoz Inc. entered into a separate $28.5 million settlement agreement with a putative class of indirect reseller plaintiffs, including retail pharmacies, clinics, and hospitals.
- ▪The $28.5 million indirect reseller settlement is subject to court approval, and class members retain the right to opt out.
Decade-long antitrust litigation resolution
- ▪The agreements resolve all remaining claims filed by any United States federal or state government against Sandoz Inc. in the generic antitrust litigation.
- ▪The settlements do not affect Sandoz Inc.'s full-year 2026 financial guidance or its mid-term outlook.
- ▪The state and reseller settlements contain no admission of wrongdoing by Sandoz Inc. or its affiliates.
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