Teva,Sun Pharma to settle Pfizer patent suit for $2.15 billion

receiving 64 per cent.

Teva will pay Pfizer and Takeda $1.6 billion and Sun will pay $550 million (Rs 3,175 crore). Teva will pay $800 million in 2013 and the remaining $800 million by October 2014; Suns entire payment will be made in 2013.

We are pleased with todays settlement,which recognizes the validity and value of the innovation that led to Protonix, said Amy W 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.

Teva and Sun had launched at-risk generic versions of Protonix prior to the January 2011 expiry of the patent for pantoprazole,the active ingredient in Protonix.

These at-risk launches were determined by a jury in New Jersey federal court to violate United States Patent No. 4,758,579,which is owned by Takeda and was licensed exclusively to Wyeth in the United States. The parties reached the settlement shortly after the commencement of a trial to determine damages in the same New Jersey federal court, Pfizer said in a statement.