Teva to pay out $1.6 Billion to Pfizer and Takeda in Damages for Infringing Patent for Protonix.

protonix moleculeProtonix

Protonix is a heartburn treatment that was developed and patented by Nycomed which was later purchased by Japan’s Takeda Pharmaceutical Co.  Nycomed had licensed Protonix to Wyeth, which Pfizer subsequently  purchased.

Israel’s Teva Pharmaceutical Industries Ltd. and India’s Sun Pharmaceutical Industries launched at-risk generic versions of Protonix. Teva started selling its generic version of Protonix in December 2007. Sun then launched its own version in early 2008, both before the U.S. patent covering the drug expired in 2011.

back in 2010, a jury decided that the patent protecting Protonix was valid, and the U.S. District Court for the District of New Jersey then upheld that decision. A settlement was reached shortly after the start of a federal trial to determine damages. Under the settlement, Teva Pharmaceutical Industries Ltd. will pay $1.6 billion while India’s Sun Pharmaceutical Industries Ltd. will pay $550 million in infringement damages, for selling their generic equivalents of Protonix before the expiry of the patent protecting the drug. According to Associated Press, Pfizer Inc. will apparently pocket 64% of the settlement.

Gives you heartburn, doesn’t it?

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