Danish pharmaceutical company Novo Nordisk was sued in a U.S. federal court for allegedly using its patents to maintain a monopoly on the diabetes drug Victoza. The class action complaint, filed by South Carolina-based drug wholesaler Smith Drug, claims that Novo engaged in a “pay-for-delay” scheme with generic drugmaker Teva Pharmaceuticals to block cheaper generic versions from entering the market.
According to the lawsuit, Victoza generated more than $5 billion in U.S. sales in 2018. The complaint alleges that without the 2019 settlement between Novo and Teva, generic Victoza would have been available in 2023, giving consumers access to lower-cost alternatives. A Novo spokesperson declined to comment on the lawsuit.
The lawsuit seeks unspecified monetary damages on behalf of a proposed class of Victoza purchasers. Victoza was Novo’s first-generation GLP-1 drug approved by the FDA in 2010, while its second-generation GLP-1 treatment, Ozempic, has contributed to the company’s strong market position in Europe. Teva launched the first generic version of Victoza in 2024. The case is Smith Drug Co v. Novo Nordisk Inc, U.S. District Court for the Eastern District of New York, No. 1:26-cv-00420.
