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Generic drug companies reach $2.15 billion settlement with Pfizer

  |   June 12, 2013 at 1:44 PM
NEW YORK, June 12 (UPI) -- U.S. pharmaceutical giant Pfizer Inc. said it had reached a $2.15 billion settlement with two companies for intellectual property rights infringement.

Pfizer said Teva Pharmaceuticals Industries Ltd. would pay the company $800 million this year and $800 million in 2014 for infringing on its patent for pantoprazole, the active ingredient in Protonix, an acid reflux medicine that is considered a blockbuster drug, denoting its commercial success.

Sun Pharmaceutical Industries Ltd. will pay Pfizer $500 million this year, the company said.

Pfizer will receive 64 percent of the settlement and Nycomed, which is part of Takeda, will receive the rest.

Teva and Sun, meanwhile, have admitted that they infringed on Pfizer and Nycomed's patent rights.

"We are pleased with today's settlement, which recognizes the validity and value of the innovation that led to Protonix. Protecting intellectual property is vital as we develop new medicines that save and enhance patients' lives," said Amy Schulman, executive vice president and general counsel of Pfizer.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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