Sun Pharmaceutical Industries announced that it together with its subsidiaries, have settled an ongoing litigation pending in the US District Court, District of New Jersey (“Court”) regarding Sun Pharma subsidiary’s generic pantoprazole. Sun Pharma will pay a lump-sum $550 milllion as a part of this settlement.
Under the terms of the litigation settlement between Sun Pharma, and Wyeth, (now a division of Pfizer Inc.,) and Altana Pharma AG, (now known as Takeda GmbH) the parties have dismissed all their claims.
In 2005, Wyeth and Altana had filed a patent infringement suit against Sun Pharma after Sun Pharma filed its abbreviated new drug application for pantoprazole. Sun Pharma launched its generic pantoprazole in the US on January 30, 2008. In April 2010, a jury had determined that Altana’s patent is not invalid. On June 3, 2013, 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 culminates the ongoing litigation. Sun Pharma can continue to sell its generic pantoprazole in the US.
Commenting on Sun Pharma’s settlement, Sarabjit Kaur Nangra, Vice-President (Research), Angel Broking said, “While the settlement amount is higher than already provided by the company (Rs 600 crores), the settlement would end an overhang on the stock. In terms of funds, the company is already cash rich with cash and cash equivalents of Rs 5,000 crores. Thus (this settlement) will not strain the balance-sheet.”
EP News Bureau – Mumbai
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