Sandoz US subsidiaries resolve generic drug antitrust class action litigation with direct purchaser class plaintiffs

Published

Ad hoc announcement pursuant to art. 53 SIX Swiss Exchange Listing Rules 

MEDIA RELEASE

  • Sandoz US to pay USD 265 million in exchange for full release of all claims by the class
  • Resolves all federal antitrust damages for direct purchaser class plaintiffs’ claims in this litigation, if approved by Court

Basel, February 29, 2024Sandoz Inc. and its subsidiary Fougera Pharmaceuticals Inc. (together, “Sandoz US”) – both indirect subsidiaries of Sandoz Group AG – have entered into a settlement agreement with the class of direct purchaser plaintiffs in the multidistrict litigation entitled In re Generic Pharmaceuticals Pricing Antitrust Litigation in the US District Court for the Eastern District of Pennsylvania.

This agreement, which contains no admission of wrongdoing by Sandoz US, resolves all of the damages claims of the direct purchaser class, which is the only class of plaintiffs that purchased directly from Sandoz US and brought their claims under federal law. Under the terms of the agreement, Sandoz US will pay USD 265 million in exchange for a full release of all claims asserted against it in the direct purchaser class action by the settlement class members. The full amount of the payment will be included in the company’s 2023 financial results.

As a new public company, this settlement underscores the Sandoz commitment to integrity and sound governance, and is an encouraging step toward putting allegations of legacy conduct behind us.

Beyond the payment, settlement terms include:

  • A broad release of claims that covers alleged conduct between 2009 and 2019 as well as all medicines at issue in the direct purchaser class claims.
  • Class members have the right to opt out of the settlement, which could result in the settlement amount being reduced on a pro rata basis by up to 12 percent, or USD 31.8 million, based on the aggregate dollar sales of the generic pharmaceutical products at issue.
  • Sandoz US also has the option to terminate the settlement if opt-outs reach a certain pre-determined threshold.

The settlement is subject to Court approval, as is required for class settlements under US law. If the Court preliminarily approves the settlement, class members will be notified of the settlement and given an opportunity to opt out of the class, object to the settlement, and file a claim to receive a settlement payment.

Following approval of this settlement, the multidistrict litigation, which was disclosed in the August 18, 2023 Listing Prospectus, will have two remaining plaintiff classes, but they concern indirect and downstream purchases and damages claims under state law. Sandoz US continues to defend itself vigorously in those cases, and has raised a number of defenses, including whether downstream purchasers were actually damaged due to the alleged conduct.

About SandozSandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and biosimilar medicines, with a growth strategy driven by its Purpose: pioneering access for patients. 22,000 people of more than 100 nationalities work together to bring Sandoz medicines to some 500 million patients worldwide, generating substantial global healthcare savings and an even larger total social impact. Its leading portfolio of more than 1,500 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to the year 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the first biosimilar in 2006. In 2022, Sandoz achieved sales of USD 9.1 billion and core EBITDA of USD 1.9 billion.

 

DisclaimerThis Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

Contacts

Global Media Relations contacts Investor Relations contacts
Global.MediaRelations@sandoz.com Investor.Relations@sandoz.com
Steffen Kurzawa +41 79 800 8501 Karen M. King +1 609 722 0982
Leslie Pott +1 201 354 0279 Laurent de Weck +41 61 529 14 85

Attachment

Primary Logo

Source: Sandoz Group

In This Story

SDZNY