Horizon Pharma to pay Express Scripts 65 min dollars to settle rebate litigation

Horizon Pharma Plc said it would pay pharmacy benefit manager Express Scripts Holding $65 million to settle litigation related to after-market rebates for three of its medicines.

Express Scripts, the largest manager of U.S. drug benefits, in November sued Horizon for a breach of contract, seeking $166.2 million in rebates related to Duexis, Rayos and Vimovo.

Horizon contested the claim and contended that Express Scripts had breached the rebate agreement.

Under the settlement, both companies will be released from claims relating to the litigation without admitting any fault or wrongdoing.

Prescription benefit managers negotiate drug benefits for health plans and employers and maintain a list of covered drug benefits, called a formulary, that determines which drugs patients can easily buy.

They often extract discounts and after market rebates from drugmakers in exchange for including their medicines on the list with low co-payments.

Horizon said that Express Scripts has not added Duexis and Vimovo to its coverage list after removing the drugs last year.