Despite FDA approval of its application to develop a generic version of acne treatment Solodyn, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and Medicis Pharmaceutical Corporation (NYSE: MRX) have reached an agreement under which Teva will wait until November, 2011 to market the drug.
As part of the settlement agreement, Teva has agreed to immediately stop all further shipments of generic Solodyn. Medicis has agreed to release Teva from liability arising from any prior sales of its generic Solodyn, which were not authorized by Medicis.
Teva announced yesterday that the FDA had granted final approval to its application to develop a generic version of Solodyn, but Medicis and Teva were still involved in patent litigation in a US court in Delaware.
Last night, the two firms announced they have agreed to terminate all legal disputes between them relating to Solodyn extended release tablets. Teva has confirmed that Medicis' patents relating to Solodyn are valid and enforceable, and cover Teva's activities relating to its generic product under the abbreviated new drug application it had filed.
Shares in Teva closed down 1.47% yesterday at $44.99, giving it a market cap of $39.98 billion. The agreement with Medicis was announced after the markets had closed.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009