Daiichi Sankyo reaches $300-million deal to settle US litigation over hypertension drug

Daiichi Sankyo announced an agreement to settle pending product liability litigation in the US related to its olmesartan-containing hypertension products Benicar (olmesartan medoxomil), Benicar HCT (olmesartan medoxomil/hydrochlorothiazide), Azor (olmesartan medoxomil/amlodipine) and Tribenzor (olmesartan medoxomil/amlodipine/hydrochlorothiazide) for up to $300 million. The claimants, which currently stand at almost 2300 cases, allege that the products caused sprue-like enteropathy and other severe gastrointestinal symptoms.

Daiichi Sankyo said it believes that the claims made in the litigation "are without merit, and does not admit liability." However, executive chairman of the drugmaker Glenn Gormley explained "we believe a settlement is in the best interest of all."

According to the company, the settlement will become finalised if at least 95 percent of all claimants agree, or opt in. Daiichi Sankyo said that it does not expect the settlement to have a material impact on its finances given that after proper claim documentation is presented, the settlement will be primarily funded by assets from insurance companies and supplemented by company funds.

Adam Slater, a lawyer representing one of the plaintiffs, explained that those who experienced more severe injuries will receive larger payments. The lawyer added that the settlement was reached as a federal judge was set to schedule the first of the pending cases for trial. The settlement also resolves claims against Allergan's Forest Laboratories unit, which sold Benicar in the US.

In 2015, Daiichi Sankyo agreed to pay $39 million to US and state Medicaid programmes to resolve allegations that it paid bribes to doctors to increase sales of Azor, Benicar, Tribenzor and Welchol (colesevelam).