Jury Hits Takeda With $885 Million Antitrust Verdict

Takeda Pharmaceutical Company Limited (NYSE:TAK) on Monday said a Massachusetts jury awarded nearly $885 million in damages against the company in litigation tied to its constipation drug Amitiza (lubiprostone), with portions of the award subject to automatic trebling under U.S. antitrust law. Takeda To Appeal AMITIZA Antitrust Verdict Plaintiffs in the consolidated case alleged that a 2014 settlement agreement between Takeda, Sucampo Pharmaceuticals, and Par Pharmaceutical related to generic Amitiza delayed competition and violated antitrust laws. The jury awarded $884.9 million in single damages. That included about $474.9 million awarded to a wholesaler class and roughly $346.8 million to individual retailers. Under U.S. antitrust law, those amounts will automatically triple once judgment is entered. Damages tied to the end payor class remain subject to additional proceedings before a final judgment is issued. Read Also: Takeda's Next Wave Of Drugs Has Investors Watching Closely Takeda Defends 2014 Settlement Agreement Takeda said the settlement agreement was reached through an arm’s-length negotiation process and complied with the Hatch-Waxman framework governing pharmaceutical patent disputes. According to the company, the agreement allowed Par Pharmaceutical to launch an authorized generic version of Amitiza on January 1, 2021, more than six years before the drug’s patents were set to expire and 17 months before Par’s abbreviated new drug application received approval. Takeda also noted that other generic competitors later entered the market under separate licensed entry dates. The company no longer markets or sells Amitiza after terminating its collaboration and license agreement with Sucampo on March 31, 2024. “We remain firm in our conviction that the plaintiffs’ case lacks merit, and we will vigorously pursue post-trial motions and an appeal,” Takeda said in a statement. TAK Price Action: Takeda Pharmaceutical shares were up 0.33% at $16.62 at the time of publication on Tuesday, according to Benzinga Pro. Over the past month, TAK has declined about 6.9% versus a 4.0% rise in the S&P 500 and is up roughly 5% year-to-date compared to the index’s 7.5% gain. Photo via Shutterstock