Daiichi Sankyo Makes $300-Million Settlement for High-Blood Pressure Drug
Daiichi Sankyo has agreed to settle for $300 million almost 2,300 pending liability lawsuits relating to the company’s olmesartan products (Benicar, Benicar HCT, Azor and Tribenzor), used to treat hypertension. The lawsuits, which were filed beginning in January 2014, had alleged that such products caused sprue-like enteropathy and other severe gastrointestinal symptoms.
The settlement requires, among other thresholds, that at least 95% of all eligible litigants and claimants decide to opt-in to the settlement under certain conditions. Claimants eligible to opt-in to the settlement program, under certain conditions, include those with claims already filed in court and those with certain unfiled claims. Once the agreed-upon thresholds are met, and following a review of claims by a claims administrator, claimants who meet specified criteria will receive payouts from the settlement fund. A portion of this $300 million will also be used for plaintiffs’ counsel fees and expenses and the cost of claims administrator as per the settlement agreement.
The company said that the impact to its financial position is not considered material because, upon presentation of proper claim documentation, the settlement fund is expected to be comprised primarily of proceeds from several of Daiichi Sankyo Group’s insurance companies supplemented with company funds.
Daiichi Sankyo said that it believes that the claims made in this litigation are without merit and does not admit liability, said the company in a statement.
Source: Daiichi Sankyo