 "Sun Pharma to pay $550 million to settle US litigation")
The company announced it had, together with its subsidiaries, settled an ongoing litigation pending in the US District Court, New Jersey, regarding the drug.
Under the terms of the litigation settlement among Sun Pharma, Wyeth (now a division of Pfizer Inc) and Altana Pharma AG (now known as Takeda GmbH), the parties have dismissed all their claims. Sun Pharma said the company could continue to sell its generic pantoprazole in the country.
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The shares of Sun Pharma today fell 0.28 per cent to close at Rs 981 on BSE.
In 2005, Wyeth and Altana had filed a patent-infringement suit against Sun Pharma after the Mumbai-based company filed its Abbreviated New Drug Application for pantoprazole. Last year, Wyeth had sought $960 million in damages from Sun Pharma for an alleged patent infringement in launching generic Protonix. Drugs with pantoprazole (anti-ulcer drug) as a key ingredient have annual global sales of about $8 billion.
Sun Pharma had launched its generic pantoprazole on January 30, 2008, in the US. In April 2010, a jury had determined that Altana’s patent was valid. On June 3, the court began a jury trial to assess the amount of past damages that Sun Pharma owed for infringing Altana’s now expired patent. This settlement now culminated the ongoing litigation, the statement added.
The original patent related to Protonix is held by Swiss drugmaker Nycomed and was licensed to Wyeth. In cases of at-risk launch of generic drugs in the US, the innovator companies can claim a liability based on the loss of profit.