The Effexor XR Antitrust Litigation, centered around allegations of collusion between pharmaceutical giant Pfizer’s predecessor, Wyeth, and competitor Teva, has taken a significant turn with Pfizer’s agreement to a $25.5 million settlement.
This settlement aims to address claims of conspiring to delay the release of a more affordable generic version of the widely-used antidepressant Effexor XR. The recent agreement follows closely on the heels of a $39 million settlement disclosed earlier this month. Legal representatives for the plaintiffs have taken proactive steps by filing a motion seeking approval from a federal judge in New Jersey for the proposed settlement. Should the settlement gain judicial approval, it will primarily benefit a class of “indirect purchasers” who acquired Effexor XR through intermediaries rather than directly from Wyeth. Notably, the proposed allocation of settlement funds designates 78% to third-party payors, including insurance companies and employee health plans, with the remaining 22% earmarked for individual consumers. Plaintiffs’ attorneys stand to receive approximately $8.7 million, representing 34% of the total settlement amount. While Pfizer has not admitted wrongdoing, the company expressed in a statement that it views the settlement as equitable, reasonable, and the most expedient means to resolve the ongoing litigation. Lead attorney for the plaintiffs, James Cecchi, opted not to provide additional commentary on the matter. In addition to the recent $25.5 million settlement, a separate $39 million settlement, subject to judicial approval earlier this month, pertained to a distinct class of purchasers who acquired Effexor XR directly from Wyeth, including drug wholesalers. Should these settlements receive judicial approval, they would mark the culmination of over 12 years of legal disputes surrounding allegations that Wyeth’s collaboration with Teva violated U.S. antitrust laws. Notably, Teva remains excluded from the settlement agreements, indicating that legal proceedings against the company will continue unabated.
