REPOST: Teva, Sun Pharma to pay $2.15 bln to settle Pfizer patent suit

Teva Pharmaceuticals Industries Ltd and Sun Pharmaceutical Industries Ltd settles a lawsuit against Pfizer and Takeda Pharmaceutical Co Ltd, says this article.
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Pfizer Inc said Teva Pharmaceuticals Industries Ltd and Sun Pharmaceutical Industries Ltd would pay $2.15 billion to settle a patent infringement lawsuit related to its acid-reflux drug Protonix.

Japan's Takeda Pharmaceutical Co Ltd, Pfizer's partner on the drug, will receive 36 percent or about $774 million from the settlement.

Pfizer won a protracted 10-year legal battle in April 2010 when a New Jersey jury ruled that Teva had infringed the Protonix patent. Teva started selling a generic version of the drug in 2007.

A trial to determine damages began on Monday.

The patent was held by Nycomed - now a Takeda subsidiary. Protonix was licensed to Wyeth, which is now owned by Pfizer.

Israel-based Teva, the world's largest generic drugmaker, will pay $1.6 billion - half this year and the rest by October 2014. India's Sun Pharma will pay $550 million this year.

Teva said in February that it may face legal losses of up to $2.07 billion to resolve the case.

Sun Pharma set aside 5.84 billion rupees, or about $100 million, last November towards potential damages to Pfizer. The company will now have to shell out a further $450 million as final settlement.

"This is not a very positive out-of-court settlement. The agreed amount is way too high for such a settlement," said Daljeet Kohli, head of research at brokerage IndiaNivesh in Mumbai. "It will also restrict Sun's ability to look for acquisitions."

Pfizer's shares were up about 1 percent at $28.66 before the bell, while Teva's U.S.-listed shares were down about 1 percent at $39.51.

Sun Pharma closed little changed at 980.70 rupees, while Takeda's stock closed down 1.4 percent at 4,355 yen.

($1 = 58.4950 Indian rupees)

Evan Granowitz is a civil litigator who was named a Super Lawyers Rising Star in 2009, 2010, and 2011. Visit this website for more information about him and his practice areas.

Understanding product liability claims: The three basic categories

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Ever bought a product that the manufacturer claimed was fine but is actually not? Did a product cause injury or harm to you or your family? If so, then you can sue for a product liability claim.

There are three categories of product liability claims:

Defectively manufactured products.

These are products that are flawed because of some mistake or error in manufacturing them, such as fabrication machine problems or part installation problems, so much so that they cause harm to people who use them. Instances include a TV that exploded due to faulty wiring, cracked chains on bicycles, cellphone batteries that explode during prolonged use, tainted medicine, and broken condoms.

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Defectively designed products.

These are products that are faulty by design and not because of faulty manufacturing process. Examples include a car with a gas pedal that sticks, a children’s toy with sharp edges, and a phone that dies after just an hour even without use.

Failure to provide enough warnings or instructions.

Manufacturers will be liable should they fail to provide enough warnings or instructions on how to properly use their product, as improper product use due to missing warning labels or instructions can lead to accidents.

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Knowing these categories can help you and your lawyer find out whether you have a case or not and what strategies your lawyer needs to use.

Atty. Evan Granowitz of Wolf Group LA is a highly respected lawyer who specializes in civil litigation. This website provides more information on civil litigation cases.