FTC sues Endo Pharma et al over blocking generics of Opana ER and Lidoderm

US drugmaker Endo International (Nasdaq: ENDP) saw its shares fall 6.7% to $26.54 in early trading on Thursday, after the USA’s competition regulator sued the company for violating antitrust regulations.

The US Federal Trade Commission filed a complaint in federal district court alleging that Endo Pharmaceuticals and several other drug companies violated antitrust laws by using pay-for-delay settlements to block consumers’ access to lower-cost generic versions of Opana ER (oxymorphone hydrochloride) extended-release tablets and Lidoderm (lidocaine patch 5%).

Following more than a decade of FTC challenges to pay-for-delay settlements, today’s enforcement action is the first FTC case challenging an agreement not to market an authorized generic – often called a “no-AG commitment” – as a form of reverse payment, the regulator pointed out.