Pfizer in $2.15bn settlement with Teva over Protonix patent

 
City A.M. Reporter
PFIZER said yesterday that Teva Pharmaceuticals and Sun Pharmaceutical would pay $2.15bn (£1.4bn) to settle a patent infringement lawsuit related to its acid-reflux drug Protonix.

Japan’s Takeda Pharmaceutical, Pfizer’s partner on the drug, will receive 36 per cent or about $774m from the settlement.

Pfizer won a protracted 10-year legal battle in April 2010 when a New Jersey jury ruled that Teva had infringed the Protonix patent. Teva started selling a generic version of the drug in 2007. The patent was held by Nycomed – now a Takeda subsidiary. Protonix was licensed to Wyeth, which is now owned by Pfizer. Israel-based Teva, the world’s largest generic drugmaker, will pay $1.6bn – half this year and the rest by October 2014. India’s Sun Pharma will pay $550m this year.

Teva said in February that it may face legal losses of up to $2.07bn to resolve the case. Sun Pharma set aside 5.84bn rupees, or about $100m, last November towards potential damages to Pfizer. The firm will now have to shell out a further $450m as a final settlement.

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