Pfizer Wins in $2.15bn Patent Infringement Case

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Pfizer settled a nearly 10-year battle Wednesday, announcing a $2.15 billion settlement from Teva Pharmaceuticals Industries and Sun Pharmaceutical Industries for patent infringement on its drug Protonix.

Pfizer settled a nearly 10-year battle Wednesday, announcing a $2.15 billion settlement from Teva Pharmaceuticals Industries and and Sun Pharmaceutical Industries for patent infringement on its acid-reflux drug Protonix.

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

Under the terms of the settlement, Teva and Sun will compensate Pfizer's subsidiary Wyeth and Takeda for the damages suffered when Teva and Sun launched "at-risk" generic versions of Protonix prior to the January 2011 expiration of the patent for pantoprazole, the drug's active ingredient.

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Israel-based Teva will pay $800 million in 2013 and the remaining $800 million by October 2014. Sun Pharma will make its entire payment of $550 million in 2013.

"Today's settlement reflects our resolve to enforce our patents both in and out of the courtroom," Amy W. Schulman, executive vice president and general counsel of Pfizer, said in a statement. "We are proud of the work of the scientific colleagues who developed this medicine and the lawyers who defended it."

Pfizer's shares traded higher in pre-market trading following the report.

-Reuters contributed to this report.

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