Sun Pharma, Ranbaxy Inc sign pact with 2 plaintiff groups to settle claims

Sun Pharmaceutical Industries Ltd on Wednesday said it along with its US-based arm Ranbaxy, Inc, has

signed a USD 485 million settlement with two plaintiff groups regarding Ranbaxy generic drug application antitrust litigation.

The company and its arm have signed a binding term sheet with two plaintiff groups, the Direct Purchaser and End-Payor Plaintiffs, collectively resolving all of the claims against the company, in the matter of "In re Ranbaxy Generic Drug Application Antitrust Litigation", Sun Pharma said in a regulatory filing.

The case has been ongoing in the U.S. District Court for the District of Massachusetts (USA) for several years, it added.

There were multiple antitrust, consumer protection, and civil RICO class actions consolidated in the District of Massachusetts, (USA) against the Company in connection with generic Diovan, a drug for the treatment of hypertension; generic Nexium, a drug for the treatment of gastroesophageal reflux disease and peptic ulcers; and generic Valcyte, a drug for the treatment of cytomegalovirus disease, it added.

The actions and claims relate to alleged conduct by Ranbaxy Laboratories Ltd. and its U.S. subsidiary prior to its acquisition by Sun Pharmaceutical Industries Ltd, the company said.

Sun Pharma said has disputed the claims of the plaintiffs and defended these matters vigorously.

"With a view to resolve this dispute and avoid uncertainty, the company has agreed to enter a comprehensive settlement with these plaintiff groups for a total settlement amount of USD 485 million," it said.

As a consequence of the binding term sheet, the company shall execute the necessary settlement agreements, which, upon approval by the US Court, will ensure that all allegations against it has denied, is "not conceded and not admitted, do not survive and stand extinguished".