AstraZeneca has struck a $50.9 million truce to settle allegations that it played keep-away with a cheaper version of its blockbuster schizophrenia drug, Seroquel XR. The deal comes five years after a pack of drug buyers dragged the pharma giant into court, claiming a backroom maneuver with Handa Pharmaceuticals blocked generic competition and inflated their costs.
Filed in Delaware federal court, the settlement—awaiting a judge’s sign-off—would wrap up a class action spearheaded by companies like Smith Drug Co. and KPH Healthcare Services. A separate, smaller check—$494,000—will come from Handa, whose role in the alleged delay was also under the microscope.
A trial had been penciled in for early May, but both companies sidestepped the courtroom. Though neither admitted wrongdoing, they cited the usual playbook: settling avoids “expense and distraction.” For the buyers, attorneys hailed the payout as “outstanding,” while eyeing up to 36%—roughly $18.5 million—in legal fees.
The controversy dates back to the mid-2010s, when Seroquel XR, once raking in more than $5 billion annually, remained king of the hill despite its patent protections running out. Plaintiffs accused AstraZeneca and Handa of using a “pay-for-delay” strategy to freeze out generics between 2015 and 2017.
It’s not AstraZeneca’s first time on the hook over Seroquel. In 2010, the company shelled out $520 million to the U.S. government over illegal promotion. A year later, another $68.5 million went to states to resolve accusations of deceptive marketing.
This latest payout adds yet another chapter to the long-running tale of one of Big Pharma’s most scrutinized cash cows—closing one case, while the legacy of Seroquel lingers on in ledgers and lawsuits alike.
