Sandoz Resolves U.S. Antitrust Case for $275 Million

Sandoz, a division of Novartis (SIX:SDZ), has reached a settlement agreement of $275 million with the end-payor plaintiffs in the Generic Drug Antitrust Class Action Lawsuit in the United States. The company announced this morning that the agreed amount will be paid by the end of 2024, effectively addressing all damage claims from the end-payor class involved in the lawsuit.

To account for additional financial impact, Sandoz has set aside an additional $265 million to cover the remaining claims of the opt-out plaintiffs in the same case. While Sandoz stands ready to vigorously defend itself against these allegations, this provision serves as an initial estimate of potential costs arising from these additional legal challenges.

The combined financial impact of the settlement and the provision for remaining claims is expected to result in an economic cost of CHF 1.1 per share. This settlement marks a pivotal step in Sandoz's efforts to resolve the ongoing litigation, providing a clearer path for the company's financial planning and operations.