Endo, Watson, Teikoku to Pay $270 Million to Settle Lidoderm Pay-For-Delay Suits

Endo International and two other drugmakers agreed to pay $270.8 million to settle class-action lawsuits over a pay-for-delay arrangement for a generic of Endo’s Lidoderm lidocaine pain patch.

In 2013, while Watson Pharmaceuticals was in the process of bringing a generic version of the Lidoderm pain patch to market, Lidoderm manufacturers Endo and Teikoku made a $266 million deal with the company to delay the launch and drop its patent dispute with the two manufacturers. Endo made about $12.85 million from the Lidoderm patch in the third quarter of 2017.

Under the settlement deal, Endo will pay $60 million to the direct purchasers in the litigation, while Watson will pay $71 million and Teikoku will pay $35 million. In a separate settlement for so-called end-payer plaintiffs, whose financial harm was more indirect, the end-payers will receive $41 million from Watson, $40 million from Endo and $23 million from Teikoku.