Sept 23 (Reuters) - Amneal Pharmaceuticals ( AMRX ) has

sued Colorado in an effort to block a state law requiring it to

provide free generic EpiPens to pharmacies.

In a complaint filed on Friday in federal court in Denver,

Colorado, New Jersey-based Amneal said that the law, which was

passed last year and took effect in January, was an illegal

taking of its property under the 5th Amendment of the U.S.

Constitution.

The law aims to bring down the often high costs of

auto-injectors like Viatris' ( VTRS ) EpiPen, handheld devices

that treat life-threatening severe allergic reactions by

automatically injecting a dose of the drug epinephrine.

It requires all health insurance plans that cover

auto-injectors to provide them at a cost of no more than $60 for

a two-pack, a requirement that Amneal is not challenging.

The law also requires pharmacies to provide the injectors

with the same $60 price cap to people whose insurance does not

cover them, and manufacturers in turn to provide the pharmacies

with a free replacement or reimbursement for each injector sold

under that requirement.

The company's generic version of the device Adrenaclick,

which was approved in 2018, generally costs more than $100

without insurance, while a pack of brand-name EpiPens can cost

as much as $700.

Amneal said it has had to replace 304 injectors since the

program began.

"Colorado's reimburse-or-resupply requirement plainly

effects an unconstitutional, 'per se physical taking' of

Amneal's personal property in violation of the Fifth Amendment,"

it said, asking the court to issue an order blocking enforcement

of the law.

The office of Colorado Attorney General Philip Weiser

declined to comment.

Viatris ( VTRS ) drew harsh criticism from U.S. lawmakers in 2016 for

increasing the price of EpiPens sixfold in less than a decade.

It reached a $465 million settlement with the U.S.

Department of Justice in 2017 over claims that it used

anticompetitive tactics to drive up the price, and in 2022

agreed to pay $264 million to settle related private litigation.

Pfizer ( PFE ), which manufactured the product for Viatris ( VTRS ), has also

reached settlements with private plaintiffs totaling almost $400

million.

The case is Amneal Pharmaceuticals ( AMRX ) v. Weiser, U.S. District

Court for the District of Colorado, No. 1:24-cv-02609.

For Amneal: Jay Lefkowitz of Kirkland & Ellis

For Colorado: not yet available

Read more:

Mylan, U.S. finalize $465 million EpiPen settlement

EpiPen antitrust litigation settled; Viatris ( VTRS ) to pay $264

million

Pfizer ( PFE ) to pay $50 mln to settle drug wholesalers' EpiPen

antitrust claims

(Reporting By Brendan Pierson in New York)