Terms of the VCU agreed to by Teva Canada and the PMPRB to end proceedings in the Copaxone matter reveal a significant win for Teva.
Teva has agreed – without admission of excessive pricing – to pay a total fine of $248,222.32 to settle the matter. That’s a whopping $2.6 million or 91% less than the amount the Board Panel, in its decision of February 23, 2012, had ordered Teva to repay for cumulative excess revenues in the 2002 to 2007 period. It is also very telling to note that the final National Non-Excessive Average Prices (N-NEAPs) agreed to in the VCU are identical to those in the Board Panel decision of 2012 and so, under normal circumstances, based on the actual Copaxone transaction prices, would still amount to cumulative excess revenues of $2.8 million.
Even if you assume that Teva incurred legal fees of somewhere around $1.5 million for legal representation at its two prior Board Hearings and Federal Court challenges, it comes out well ahead in the deal, including a N-NEAP of $45.23 going forward in 2014. That’s almost 26% higher than Copaxone’s $36.00 ATP in 2003.
What does the PMPRB manage to take away from this whole affair?
Not much. It has been spared the prospect of either watering down the enforceability of its maximum allowable price increase provisions in a public decision of its own making in Hearing #3 or, very likely, it has escaped an unimaginable third quashing of a board hearing decision by the Federal Court. Clearly, the PMPRB had no appetite for either.