Zetia antitrust trial for Glenmark and Merck; reverse-payment scheme litigation

Indian drugmaker Glenmark Pharmaceuticals (BSE: 532296) and US pharma giant Merck & Co (NYSE: MRK) are facing an antitrust lawsuit over allegations that the duo illegally settled a patent dispute in order to delay the launch of generic versions of the blockbuster cholesterol reducer Zetia (ezetimibe).

A Virginia, USA, federal judge has denied summary judgment to the drugmakers, amidst allegations that Merck paid Glenmark around $800 million to delay the launch of its Zetia generic. The two companies have spent years fighting allegations that Merck dropped a patent infringement lawsuit against Glenmark and paid it to extend Zetia's shelf life.

As the owner of a patent for ezetimibe, Merck had sued Glenmark for patent infringement in 2009 in connection with Glenmark's application to the US Food and Drug Administration (FDA) for approval of a generic version of ezetimibe. Merck also sued Mylan for patent infringement the same year in connection with the US FDA's approval of a generic version of Vytorin, another Merck proprietary drug containing ezetimibe.