Sandoz said it has taken further steps to resolve legacy U.S. generic medicine litigation by reaching settlement agreements with a consortium of 43 U.S. states and territories and with indirect reseller plaintiffs in the generic drug antitrust pricing case. If completed, the agreements would leave Sandoz with no remaining U.S. federal or state governmental claims tied to the investigation of the generic medicine market.
Under the states-and-territories settlement, Sandoz Inc. and Fougera Pharmaceuticals will pay $400 million over seven years starting in 2027 in exchange for a full release of the claims asserted against them and their affiliates. Sandoz said resolving those claims also requires an additional payment of about $50 million to states that settled earlier, bringing the total payment to approximately $450 million. The agreement contains no admission of wrongdoing and is still subject to approval by the litigating states and territories.
Sandoz also reached a separate deal with the indirect reseller plaintiffs class, which includes retail pharmacies, clinics, hospitals and other entities that resold medicines to consumers and other end payers. That agreement calls for a payment of $28.5 million and would resolve all damages claims asserted by the class against Sandoz and certain affiliates, pending court approval and class member opt-out rights.
The company said the settlements do not affect its full-year 2026 guidance or its mid-term outlook. Sandoz said it has increased its previously recognized provision to reflect the settlement amounts.
Following earlier settlements with the U.S. Department of Justice, direct purchaser plaintiffs and end purchaser plaintiffs, Sandoz said the new agreements would mean all pending class actions in the U.S. generic antitrust litigation have been resolved, along with all claims filed by U.S. federal or state governments. The only remaining claims are those brought by individual plaintiffs who opted out of class settlements, and Sandoz said it continues to defend those cases vigorously.
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