Horizon Pharma has settled a lawsuit with prescription benefits manager Express Scripts related to disputed drug rebates.
Horizon Pharma USA, a Lake Forest, Ill.-based subsidiary of the Irish drugmaker, will pay $65 million to settle a lawsuit over $166.2 million in rebate payments that St. Louis-based Express Scripts said it was owed from Horizon, according to regulatory filings. The settlement comes after Horizon countersued Express Scripts, contesting the amount owed and alleging a breach of contract by the PBM.
The suit relates to rebates for Duexis, Rayos and Vimovo, which are some of Horizon's most popular drugs and are used in rheumatoid arthritis and osteoporosis, among other diseases. Neither party will admit any fault or wrongdoing in the settlement.
Horizon will pay Express Scripts in installments: 50% in the fourth quarter of this year, 25% in the first quarter of 2017 and the final 25% in the second quarter of 2017. The drugmaker expects to record the payment as a reduction in sales revenue in the third quarter of this year.
Discussions are ongoing with Express Scripts regarding the return of Duexis and Vimovo to its formulary after they were removed last year, Horizon said.
Horizon also noted in Thursday's regulatory filing that it has entered into a rebate agreement for its primary-care medicines with Prime Therapeutics, a PBM owned by 14 Blue Cross and Blue Shield plans. That agreement begins in October.