Bayer and Janssen settle Xarelto litigation

More than five years after the blood thinner Xarelto (rivaroxaban) litigation began, and with Germany’s Bayer (BAYN: DE) and Johnson & Johnson (NYSE: JNJ) subsidiary Janssen Pharmaceuticals prevailing in all six cases that went to trial, the companies have reached an agreement in principle to settle in the amount of $775 million.

The settlement amount will be shared equally between the two companies. It is expected that Bayer’s share will be partially offset by product liability insurance.

The settlement will resolve virtually all of the approximately 25,000 Xarelto claims in the USA. The companies have reserved the right to withdraw from the settlement if certain participation rates of those who are eligible to participate are not satisfied.

Bayer continues to believe these claims are without merit and there is no admission of liability under the agreement. However, this favorable settlement allows the company to avoid the distraction and significant cost of continued litigation.

"Even in the face of meritless allegations, and even while winning in court, complex litigation demands an enormous amount of time and resources," Johnson & Johnson said in a statement.

Plaintiffs had accused the drugmakers of having failed to warn about the bleeding risks, claiming their injuries could have been prevented had doctors and patients been provided adequate information.