Mayne Pharma settles US generic lawsuit for US$0.7M
- Mayne Pharma Group agreed to a US$0.7 million settlement to resolve a multi-state US civil complaint regarding generic pharmaceuticals.
- The agreement resolves long-standing legal actions brought by 49 US state attorneys general without any admission of liability.
- The resolution removes significant legal expenses and ongoing operational distraction for the company's executive leadership team.
Mayne Pharma (ASX:MYX) agreed to pay US$0.7 million to settle a civil complaint filed by attorneys general from 49 US states and territories regarding historic generic pharmaceutical market conduct.
The legal action stems from an industry-wide investigation initiated by the US Department of Justice Antitrust Division in March 2016.
The agreement requires Mayne Pharma to maintain an antitrust compliance policy for two years and submit annual confirmation notices, subject to final court approval.
The resolution successfully removes an ongoing source of legal costs and regulatory uncertainty for the Australian drug producer.
Following the announcement, the Mayne Pharma share price was up at $2.84.
The company recently appointed a new chief financial officer in July to strengthen its balance sheet and internal operational management.
In August, the company also reported its full-year financial results while launching an updated investor hub to improve market communications.
