Pfizer (NYSE:PFE) and Japanese partner Takeda have reached a $2.15 billion settlement with Teva Pharmaceuticals Industries (NYSE:TEVA) and India's Sun Pharmaceutical Industries in a patent-infringement case.
The settlement comes after a 10-year legal spat over a generic version of Protonix that was launched in the United States. Pfizer will receive $1.38 billion, or 64 per cent of the award and Takeda will collect the remainder. Teva will pay Pfizer and Takeda $1.6 billion and Sun will pay $550 million.
Pfizer's U.S. patent for Protonix, a drug that treats esophagitis, or acid reflux disease, expired in January 2011. The patent was owned by Nycomed, a Swiss pharmaceutical company acquired by Japanese firm Takeda in 2011. Wyeth, which Pfizer bought in 2009, had a license to Protonix.
Wyeth and Nycomed sued Teva and Sun after the competitors began to sell their generic versions of Protonix in late 2007 and early 2008. A prior injunction against the Teva and Sun had been thrown out after the two companies received FDA approval to market Protonix in the U.S.
Teva fell 33 cents to $39.50, while Pfizer rose 31 cents to $28.73 on Wednesday morning.