AstraZeneca has agreed to pay $50.9 million to settle a class action lawsuit accusing the company of engaging in a pay-for-delay scheme to block generic competition to its antipsychotic drug, Seroquel XR.
The 2019 lawsuit, brought by direct purchasers of Seroquel XR, alleged that AstraZeneca schemed with Handa Pharmaceuticals to delay the marketing of a generic version of Seroquel XR, which is used to treat schizophrenia and bipolar disorder.
Handa was granted tentative approval for its Abbreviated New Drug Application for generic Seroquel XR in all strengths in December 2010. The suit alleged that AstraZeneca proposed a deal in which Handa would delay production of its generic for up to five years in exchange for AstraZeneca agreeing not to sell certain versions of Seroquel XR during the first 180 days of Handa’s generic entering the market.
Handa said it will pay $494,000 to settle the buyers’ claims. Both drugmakers deny any wrongdoing.