In one of the most closely watched antitrust cases on the Eastern District of Pennsylvania’s docket, a federal judge has refused to dismiss claims that biopharmaceutical giant Cephalon Inc. established an illegal monopoly for its profitable drug Provigil by paying more than $200 million in settlements to four generic manufacturers in return for agreements that they would delay going to market with cheaper versions of the drug.

The Provigil settlements sparked a wave of lawsuits — including one brought by the Federal Trade Commission — that accused Cephalon of conspiring with the four generic manufacturers to form classic anti-competitive horizontal agreements.

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