Pfizer in $2.15 billion settlement from Teva and Sun for infringement of Protonix patent

Global pharma behemoth Pfizer (NYSE: PFE) today (June 12) said it has reached a $2.15 billion settlement reached with Israel-based Teva Pharmaceuticals Industries (NYSE: TEVA) and India’s Sun Pharmaceutical Industries (SUNP: IN) for patent-infringement damages resulting from their "at-risk” launches of generic Protonix (pantoprazole) in the USA.

The settlement comes after a nearly 10-year legal battle in which Pfizer and originator of Protonix Nycomed (now part of Japanese drug major Takeda; TYO: 4502)) sought to enforce the patent for its blockbuster acid reflux medicine. Pfizer and Takeda will divide the proceeds of the settlement with Pfizer receiving 64%.

Under the terms of the settlement, Teva and Sun will pay a total of $2.15 billion to compensate Pfizer’s subsidiary Wyeth and Takeda for the damages they suffered when Teva and Sun 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 US Patent No 4,758,579, which is owned by Takeda and was licensed exclusively to Wyeth in the USA. The parties reached the settlement shortly after the commencement of a trial to determine damages in the same New Jersey federal court.