(Reuters) -Jazz Pharmaceuticals said on Tuesday that it had agreed to a settlement of $145 million to resolve a series of antitrust lawsuits related to its narcolepsy drug, Xyrem.
Xyrem, a medication approved in the U.S., is used for the treatment of excessive daytime sleepiness and sudden loss of muscle control in patients suffering from narcolepsy, a chronic neurological disorder.
The lawsuits accused Jazz Pharma of orchestrating a scheme to delay the release of a generic version of Xyrem, made by Hikma Pharmaceuticals, leading to inflated prices for health plans.
The plaintiffs, which include the city of Providence, Rhode Island, and the New York State Teamsters Council Health and Hospital Fund, lodged cases accusing Jazz of violating U.S. antitrust laws.
Jazz is accused of making a monetary payment that kept a rival generic off the market for years, and of distributing Xyrem exclusively through a single specialty pharmacy.
Despite agreeing to the settlement, Jazz denied any allegations of misconduct.
The Ireland-based company said it plans to use its existing cash reserves to finance the settlement and expects to record a pre-tax charge of $145 million in the first quarter of 2025 in relation to the settlement.
The company reported sales of $233.8 million from Xyrem in the year 2024.
Hikma did not immediately respond to Reuters’ request for comment.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Mohammed Safi Shamsi)
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