Sandoz (SIX:SDZ), a division of Novartis (SIX:NOVN), has reached a $275 million settlement agreement with the end payer plaintiffs in a US Generic Drug Antitrust Class Action (WA:ACT) Litigation.
The company announced this morning that the agreed sum will be paid before the end of 2024, effectively settling all the damage claims of the end payer class involved in the litigation.
In anticipation of further financial implications, Sandoz has also set aside an additional $265 million to address outstanding claims from opt-out plaintiffs in the same case.
While Sandoz is prepared to defend against these claims vigorously, the provision represents an initial estimate of the potential costs that could arise from these additional legal challenges.
The combined financial impact of the settlement and the provision for outstanding claims is projected to result in a CHF 1.1 per share economic cost.
The settlement marks a decisive step for Sandoz in resolving the ongoing litigation, providing a clearer path forward for the company's financial planning and operations.
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