Pay-for-Delay Lawsuit Against Teva, AbbVie Gets Go-Ahead in Pennsylvania

A federal court in Pennsylvania ruled that a class-action lawsuit by drug distributors against Teva and AbbVie over pay-for-delay allegations can continue.

The two drugmakers are accused of using pay-for-delay deals to keep generic versions of Niaspan (niacin), commonly used to treat high cholesterol, off the market.

The lawsuit in the U. S. District Court for Eastern Pennsylvania alleges that Niaspan’s manufacturer Kos Pharmaceuticals—an AbbVie subsidiary—entered into anticompetitive settlement agreements with Teva-owned Barr Pharmaceuticals in 2005.