by Christopher Freeburn | June 12, 2013 11:35 am
A lengthy legal fight lover generic heartburn treatments has come to an end.
Pfizer (PFE) and Takeda Pharmaceutical (TKPYY) sued generic drug makers Teva Pharmaceuticals (TEVA) and Sun Pharmaceutical Industries after the companies began selling generic versions of Protonix before patent protection on the drug expired. The generic producers have now agreed to pay Pfizer and Takeda $2.15 billion to settle the action, the Associated Press notes.
Protonix was created by a company that was later acquired by Takeda, It had been licensed to a company that Pfizer purchased. In 2007, Protronix sales hit $1.9 billion, but declined sharply after generic versions hit the market. The medication’s U.S. patent didn’t expire until 2011.
The generic makers had hoped that legal actions would overturn the patent or produce a settlement with the patent holders, but U.S. courts upheld the patent. A new trial was set to begin to establish damages.
Pfizer said it will receive 64% of the settlement. Teva indicated that it will take a $930 million second-quarter charge due to the agreement. Sun Pharmaceutical Industries is based in India.
Shares of Takeda climbed more than 1% in over-the-counter trading on Wednesday, while Pfizer shares rose fractionally and Teva fell almost 1%.
Source URL: http://investorplace.com/2013/06/drug-companies-reach-2-15b-settlement-in-acid-reflux-battle/
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