WASHINGTON, May 28 (Reuters) - U.S. antitrust regulators have settled a long-running fight with Cephalon, now owned by Teva Pharmaceuticals, over how it resolved a patent infringement lawsuit over the sleep disorder drug Provigil, the Federal Trade Commission said on Thursday.
Cephalon had been accused by the FTC of illegally protecting its monopoly on Provigil by paying generic drug makers to drop their challenges to Cephalon's patent. This is often called a "pay for delay" settlement since the brand name drugmaker pays a generic maker to delay entering the market.
As part of the settlement, Teva, which bought Cephalon in 2012, agreed to pay $1.2 billion to refund buyers who paid too much for Provigil, the FTC said. (Reporting by Diane Bartz; Editing by Susan Heavey)