Novartis and Par Pay-for-Delay Antitrust Scheme

DiCello Levitt secured a $30 million settlement over anticompetitive conduct that kept drug prices high for consumers.

Callout image for Novartis case reads Settled as the trial neared, the case delivered meaningful recovery even after a key defendant declared bankruptcy.

In October 2023, DiCello Levitt secured final approval of a $30 million settlement with Novartis to resolve a complex antitrust class action involving the hypertension drug Exforge. The lawsuit alleged that Novartis and Par Pharmaceutical conspired to delay a lower-cost generic version of Exforge through a pay-for-delay agreement, keeping prices artificially high for years.

What Happened?

The case centered on a classic pay-for-delay scheme. The plaintiffs alleged that Novartis and Par entered into an unlawful agreement that restrained competition in the Exforge market. Although Par had FDA approval to launch a generic version of Exforge as early as September 2012, the company agreed to delay its market entry of a cheaper drug until September 2014. In return, Novartis agreed not to compete in the generic market by withholding its own authorized generic from September 2014 to March 2015.

This agreement delayed access to affordable alternatives and drove up prices for both the brand-name drug and its eventual generic equivalent, causing significant financial harm to consumers and third-party payors.

Legal and Strategic Complexity

The plaintiffs were indirect purchasers, which added complexity to the case. Under U.S. Supreme Court precedent, indirect purchasers must bring their claims under numerous state antitrust and consumer protection statutes. DiCello Levitt also retained more than 10 expert witnesses to support its case—an effort that reflected the highly technical and regulated nature of pharmaceutical markets and pay-for-delay litigation.

Settlement Impact

After nearly five years of intense litigation, DiCello Levitt reached a $30 million settlement with Novartis as the trial was nearing. The timing of the resolution was critical: Par’s parent company had recently filed for bankruptcy, eliminating it as a viable source of recovery. The settlement ensured that consumers and third-party payors received meaningful compensation despite the diminished defendant pool.

DiCello Levitt’s Role in the Litigation

DiCello Levitt served as Lead Counsel for the end-payor plaintiffs, successfully navigating the complex legal and economic terrain of a pay-for-delay class action. The result demonstrates the firm’s ability to pursue high-risk, high-cost litigation on behalf of consumers—and to prevail against some of the world’s largest pharmaceutical companies.

This case is In re Novartis and Par Antitrust Litigation. The DiCello Levitt team was led by Greg Asciolla and included Jonathan Crevier.

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