Summary
Amgen Inc. (AMGN) has announced a significant settlement to resolve its ongoing antitrust litigation with Ortho Biotech Products, L.P., a subsidiary of Johnson & Johnson. This agreement, effective July 10, 2008, involves Amgen paying $200 million to Ortho Biotech. The litigation, filed in the U.S. District Court for the District of New Jersey, alleged that Amgen's discount practices on its oncology products NEUPOGEN®, Neulasta®, and Aranesp® violated antitrust laws. While Amgen has agreed to this settlement, the company explicitly denies any wrongdoing and maintains that its challenged conduct was lawful. The settlement effectively dismisses the lawsuit with prejudice, bringing an end to this potentially costly legal battle. Investors should note that this $200 million charge will impact the company's financial results for the current reporting period.
Key Highlights
- 1Amgen Inc. reached an agreement to settle antitrust litigation with Ortho Biotech Products, L.P. (a Johnson & Johnson subsidiary).
- 2The settlement amount is $200 million, payable by Amgen to Ortho Biotech.
- 3The litigation concerned allegations of antitrust violations related to discounts offered on Amgen's oncology drugs: NEUPOGEN®, Neulasta®, and Aranesp®.
- 4The lawsuit will be dismissed with prejudice following the settlement.
- 5Amgen maintains its position that its conduct was lawful and admits no wrongdoing as part of the settlement.
- 6This event was reported on July 16, 2008, with the earliest event date being July 10, 2008.