The settlement follows nearly a decade of legal wrangling, in which Pfizer and Nycomed (now part of Takeda) sought to enforce the patent for Protonix, its blockbuster acid reflux medicine. Pfizer and Takeda will divide the proceeds of the settlement, with Pfizer receiving 6%.

The settlement will compensate Pfizer’s subsidiary Wyeth and Takeda for the damages caused when Teva and Sun Pharma launched Protonix prior to the January 2011 expiry of the patent for pantoprazole, the active ingredient in Protonix.

‘All our businesses continue to perform in-line with our expectations,’ said Mr Dilip Shanghvi, Managing Director of Sun Pharma. ‘We remain focused on strengthening our existing businesses and developing a differentiated and speciality driven product basket’.

Teva will pay Pfizer and Takeda US$1.6 billion and Sun Pharma will pay US$550 million. Teva will pay US$800 million in 2013 and the remaining US$800 million by October 2014, Sun’s entire payment will be made in 2013 [2].

According to reports, Teva had originally set aside US$670 million to compensate Pfizer for lost profits on the drug, but the company now finds itself US$1.6 billion short.

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References

1.  GaBI Online - Generics and Biosimilars Initiative. Sun and Teva losing battle over generic Protonix [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Aug 23]. Available from: www.gabionline.net/Generics/News/Sun-and-Teva-losing-battle-over-generic-Protonix 

2.  GaBI Online - Generics and Biosimilars Initiative. Teva and Sun Pharma settle battle over generic Protonix [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Aug 23]. Available from: www.gabionline.net/Generics/News/Teva-and-Sun-Pharma-settle-battle-over-generic-Protonix

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