PHILADELPHIA — The maker of the antidepressant Paxil agreed to pay $14 million to states to settle allegations that it blocked generic versions of the drug from being made, causing the states to pay higher prices.
The states had alleged that London-based GlaxoSmithKline PLC used frivolous patent-infringement lawsuits against generic drug makers, triggering automatic extensions of the patent for Paxil. That delayed the introduction of generic versions of the drug, resulting in higher prices both for Medicaid programs and the general public, according to the attorneys general who won the settlement filed Tuesday in federal court in Philadelphia.
The settlement is primarily for purchases made by Medicaid, the health insurance program for the poor that is jointly funded by states and the federal government. States will also receive money for other purchases for indigent care.
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