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Eve-of-Trial $65M Settlement Preliminarily Approved in Novel Antitrust Class Action Against J&J Subsidiary Actelion Pharmaceuticals
Globenewswire· 2026-03-13 17:15
Core Viewpoint - The Court has granted preliminary approval for a $65 million settlement in an antitrust class action against Actelion Pharmaceuticals, now part of Johnson & Johnson, for allegedly preventing generic drug manufacturers from developing a cheaper version of its drug Tracleer [1] Group 1: Lawsuit Details - The lawsuit was initiated by the Government Employees Health Association (GEHA), which claimed that Actelion obstructed generic manufacturers from obtaining necessary samples of Tracleer, thereby hindering the market entry of generic alternatives [2] - GEHA alleged that Actelion not only refused to sell samples but also contractually prevented competitors from acquiring samples from pharmacies, effectively blocking all avenues for generic manufacturers [2] - The alleged actions resulted in no generic product being available for nearly four years after the Tracleer patent expired, leading to over $100 million in overpayments by GEHA and other Third-Party Payors for the drug [2] Group 2: Settlement and Impact - The settlement amount of $65 million represents nearly 50% of the conservative single damages estimate, providing significant relief to the class of entities that purchased Tracleer [3] - If finalized, the settlement will resolve over seven years of litigation and deliver compensation to those affected by the alleged antitrust practices [3] Group 3: Drug Information - Tracleer, the brand name for bosentan, is used to treat pulmonary artery hypertension (PAH), a chronic and potentially fatal condition affecting 10,000 to 20,000 people in the U.S., primarily women [4] - At the time of the alleged antitrust scheme, Actelion charged $75,000 per patient annually for Tracleer [4] Group 4: Legal Proceedings - The lawsuit was originally filed in 2018 but was dismissed in 2019 due to statute of limitations issues; however, the Fourth Circuit revived the case in 2021, allowing it to proceed [5] - The district court granted class certification for GEHA in September 2024, denying Actelion's motion for summary judgment, which set the stage for the trial [5]