A class action settlement has been reached against three pharmaceutical companies wherein they have decided to pay $453 million to resolve the claims that they suppressed generic variants of Glumetza. FDA first approved Glumetza in 2005 as a once-daily extended-release variant of metformin owned by Depomed (presently known as Assertio) and Santarus which was subsequently acquired by Bausch. The Glumetza version of metformin induces fewer gastrointestinal side effects. Assertio tried to create a lawful patent wall around its extended-release variant of the drug as the company couldn’t patent metformin itself. However, the patents were easy to design around and extremely weak. Lupin Pharmaceuticals created its generic variant of Glumetza which was expected to launch in late 2012. However, Lupin entered into a “pay-for-delay” deal with Santarus and Asserto to push its market entry back to 2016.
This helped the companies to jack up the price of Glumetza from $5.72 per tablet to $51 within a few months in 2015 signifying an 800% jump. Albertsons Companies Inc., Albertsons LLC, CVS Pharmacy Inc., H-E-B L.P., Humana Pharmacy Inc., Hy-Vee Inc., The Kroger Co., Rite Aid Corp., Rite Aid Hdqtrs. Corp., R&S Northeast LLC., and Walgreen Co have been excluded from the Class.
Glumetza is an extended-release type of metformin that helps in treating Type 2 diabetes. Bausch Health is the distributor of Glumetza. Plaintiffs, in this case, have argued that Bausch Health worked with other pharma companies to increase the price of medication by suppressing the Glumetza alternatives. The 2019 class-action lawsuit alleged that Bausch paid off its generic competitors after purchasing the rights to Glumetza from Assertio to gain a monopoly on the drug. Lupin Pharmaceuticals became a part of this illegal antitrust scheme by agreeing to delay its generic variant of Glumetza. The class-action lawsuit said that Bausch, Salix, and Assertio/Santarus paid a substantial consideration to Lupin in exchange for an agreement to delay market entry of its generic version of Glumetza under reverse payment agreements.
The illegal agreements entered into by the pharma companies intended to lengthen the period during which brand-name Glumetza could make supra-competitive profits by allegedly delaying the entry of generic Glumetza into the market. They also aimed at keeping an authorized generic off the market for one year, delaying the date of entry of other generic manufacturers into the market, and raising and maintaining a steep price which both Class Members and plaintiffs had to pay for purchasing Glumetza at supra-competitive levels.
The plaintiffs added that direct purchases underwent financial injury because of this antitrust agreement and deserve compensation for the excess payment made on Glumetza purchases. Though Assertio, Bausch, and Lupin have not admitted to any wrongdoing, they have agreed to honor this class action settlement with funds totaling $453.85 million in which Bausch paid $300 million, Lupin paid $150 million and Assertio paid $3.85 million.
Eligibility For Making Claim: Class Members constitute entities who bought generic or brand-name Glumetza directly from Lupin, Bausch, or Oceanside between 6th May 2012 and 15th August 2020.
Proof of Purchase: NA
Potential Claim Amount: According to the settlement terms cash payments can be recovered by direct purchasers. The payment made to each claimant will depend on how many milligrams of medication they bought from the manufacturers directly. The Glumetza settlement website has estimated the compensation to be $0.0044 per milligram or $4.40 per 1000 mg tablet and $2.20 per 500 mg tablet.
Settlement Website: GlumetzaAntitrustLitigation.com
Objection Deadline: Dec. 1, 2021
Exclusion Deadline: Nov. 19, 2021
Claim Form: There is no online claim form submission option for this settlement. Class Members will receive a pre-populated claim form wherein they can request their shares of the total settlement fund.
Deadline For Submitting Claim: May 29, 2022
Final Hearing Date: Feb. 3, 2022
Settlement Pool: $453 million
