- In June, it agreed to pay $102.5m to settle a lawsuit by dozens of U.S. states
Drugmaker Indivior has agreed to pay $385million (£316million) to settle lawsuits brought by drug wholesalers in the US.
The Virginia-based company has been accused of illegally suppressing generic competition for its opioid addiction treatment Suboxone.
Indivior shares were up by 5.9 per cent to 1,598p in afternoon trading on Monday as investors cheered a line being drawn under the saga.
The Virginia-based company has been accused of illegally suppressing generic competition for its opioid addiction treatment Suboxone
In June, the London-listed company agreed to pay $102.5million to settle a lawsuit by dozens of US states regarding the claims. In August, it agreed to pay $30million to settle a class action lawsuit by health plans.
Indivior said that the agreement with the wholesalers that bought the treatment directly from the firm will mark the end of the multi-district litigation relating to Suboxone once the court approves it.
In a statement, Mark Crossley, CEO of Indivior, said: ‘The resolution of this litigation, which was filed over a decade ago, provides greater certainty for all Indivior stakeholders.
The settlement requires approval by the United States District Court for the Eastern District of Pennsylvania. Indivior expects the $385 million to be paid next month.
Suboxone was approved for US sale in 2002, with Indivior holding exclusive rights to sell the treatment in tablet form until 2009.
The lawsuit filed by health plans and drug wholesalers claimed Indivior switched to an oral film version of Suboxone from a tablet version to extend its monopoly, just as generic manufacturers were poised to sell their own lower-cost tablets.
The trial, which was scheduled to begin on 30 October, will be cancelled.
Indivior said it will take a charge of $228million in the third quarter, above the current remaining provision of $157million, which will be excluded from adjusted earnings.
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