A long-running legal battle between pharmaceutical giant Pfizer and purchasers of the cholesterol-lowering medication Lipitor has finally been resolved. On June 12, 2024, a New Jersey federal judge granted final approval to a $93 million settlement.
The lawsuit, filed in 2012, alleged that Pfizer engaged in anti-competitive practices to maintain a monopoly on Lipitor and inflate prices for consumers. Plaintiffs argued that Pfizer conspired with another drug manufacturer, Ranbaxy Laboratories Ltd., to delay the release of generic versions of Lipitor.
According to the lawsuit, Pfizer's tactics included fraudulently obtaining a follow-on patent for Lipitor, misleadingly listing the patent with the FDA to create an unfair advantage, and filing lawsuits against generic drug companies even if those lawsuits lacked merit. The lawsuit further alleged that Pfizer used these lawsuits as leverage to secure settlements with generic drug manufacturers, essentially paying them to stay out of the market.
"Although the original compound patent for Lipitor expired March 24, 2010, generics were foreclosed from entering the market until November 30, 2011, over 20 months later. Pfizer, at first acting alone and then later with Ranbaxy, illegally caused this delay by implementing an overarching anticompetitive scheme," the lawsuit argued.
Pfizer’s' anti competitive scheme successfully delayed the market entry of generic Lipitor. As a result, generic versions of the drug were not available until November 30, 2011, much later than they would have been otherwise.
Pfizer has consistently maintained its innocence throughout the case. However, in February 2024, they agreed to the $93 million settlement. The settlement will benefit a variety of parties, including individuals and companies who purchased Lipitor during the relevant timeframe, as well as pharmaceutical wholesalers and distributors who bought Lipitor or generic versions directly from Pfizer.
The road to this Lipitor antitrust settlement was not without its challenges. In 2017, a key decision by the Third Circuit Court of Appeals revived the lawsuit after an initial dismissal. The court found that the plaintiffs had adequately alleged wrongdoing by Pfizer, allowing the case to proceed.
With the settlement finalized, Lipitor purchasers will receive some financial compensation for the alleged anti-competitive practices. It's important to note that this lawsuit is separate from individual lawsuits filed by patients who claimed to have suffered health problems after taking Lipitor.
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