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Pfizer settles with Teva, Sun over Protonix
June 12th, 2013
NEW YORK – Pfizer Inc. has agreed to a $2.15 billion patent infringement settlement with Teva Pharmaceuticals Industries Ltd. and Sun Pharmaceutical Industries Ltd. for their launches of generic Protonix in the United States.
Pfizer said Wednesday that the settlement comes after an almost 10-year legal battle in which Pfizer and Nycomed, which is now part of Takeda, aimed to enforce the patent for Protonix (pantoprazole sodium), an acid reflux medication. Plans call for Pfizer and Takeda to divide proceeds of the settlement, with Pfizer receiving 64%.
"We are pleased with today's settlement, which recognizes the validity and value of the innovation that led to Protonix," stated Amy Schulman, executive vice president and general counsel of Pfizer. "Protecting intellectual property is vital as we develop new medicines that save and enhance patients' lives."
According to Pfizer, Teva and Sun will pay a combined $2.15 billion to compensate Pfizer's subsidiary Wyeth and Takeda for the damages when Teva and Sun launched "at-risk" generic versions of Protonix before the January 2011 expiration of the patent for pantoprazole, Protonix's active ingredient. The at-risk launches, Pfizer said, were determined by a jury in New Jersey federal court to violate a patent owned by Takeda and licensed exclusively to Wyeth in the United States. The parties settled soon after the start of a trial to determine damages in the same New Jersey federal court.
Teva will pay Pfizer and Takeda $1.6 billion, and Sun will pay $550 million, Pfizer reported. Teva will pay $800 million in 2013 and the remaining $800 million by October 2014, while Sun will make its entire payment in 2013.
Teva and Sun said Wednesday that the settlement dismisses all claims between the parties regarding generic Protonix.
"We are pleased to put this matter behind us as we continue to focus on delivering safe and affordable medicines to patients around the world," Richard Egosi, group executive vice president and chief legal officer at Teva, said in a statement.