Pfizer Reaches $2.15 Billion Protonix Accord With Teva
By Sophia Pearson - Jun 12, 2013 8:37 AM ET
Pfizer Inc. (PFE) said it reached a $2.15 billion settlement with Teva Pharmaceutical Industries Ltd. (TEVA) and Sun Pharmaceutical Industries Ltd. (SUNP) after an almost 10-year dispute over the sale of generic Protonix in the U.S.
Pfizer will receive 64 percent of the settlement while its partner Takeda Pharmaceutical Co. will get the rest, New York-based Pfizer said in a statement today. The settlement couldn’t immediately be verified in court records.
Pfizer Inc. said a $2.15 billion settlement has been reached with Teva Pharmaceutical Industries Ltd and Sun Pharmaceutical Industries Ltd. after an almost 10-year dispute over the sale of generic Protonix in the U.S. Photographer: JB Reed/Bloomberg.
“We are pleased with today’s settlement, which recognizes the validity and value of the innovation that led to Protonix,” Amy Schulman, Pfizer’s general counsel, said in the statement.
Protonix, whose chemical name is pantoprazole sodium, is a proton pump inhibitor that reduces the secretion of stomach acids and is used to treat the effects of gastroesophageal reflux disease. Pfizer acquired Protonix in 2009 as part of its $68 billion purchase of Wyeth.
Teva (TEVA), based in Petach Tikva, Israel, began selling its generic version of the drug in December 2007. Mumbai-based Sun entered the market a month later.
Sun and Teva conceded in court that they infringed the patent. In April 2010, a federal jury in Newark, New Jersey, rejected arguments by the companies that the patent covered an obvious variation of earlier patented compounds in the same family as Protonix.
The settlement comes as a trial began to determine damages in the same New Jersey court. Under the terms of the deal, Teva will pay $1.6 billion and Sun will pay $550 million. Teva will pay $800 million in 2013 and the remaining $800 million by October 2014. Sun’s entire payment will be made this year.
Teva’s American depositary receipts fell 1.2 percent to $39.33 at 8:34 a.m. in New York trading. The drugmaker gained 2.6 percent in the 12 months before today. Pfizer rose less than 1 percent to $28.66.
The case is Altana Pharma AG v. Teva Pharmaceuticals USA Inc., 04-2355, U.S. District Court, District of New Jersey (Newark)
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