According to the London Times and other sources, AstraZeneca and Teva have come to an agreement whereby Teva has dropped their lawsuit to void the patent for Nexium, a treatment for heartburn worth upwards of 4 billion dollars a year.
Ranbaxy had apparently come to a deal with AstraZeneca to produce a generic version of the drug which will, if the patent is not voided, remain patented for another 4 years. Dr Reddy and Teva had challenged the validity of the patent. The case was to go to court later this month. Now Teva has settled, and Ranbaxy may settle as well.
We note that deals between ethical and generic manufacturers to have voiding lawsuits dropped have come under criticism in the past, as if the patents for a drug is invalid, there is no basis for monopolistic prices and the situation is a sort of cartel with one company manufacturing. This is not considered in the public interest, and the European Commission have investigated this type of thing in the past.