Pfizer Obtains $2.15 Billion Settlement from Teva and Sun for Infringement of Protonix® Patent

  Pfizer Obtains $2.15 Billion Settlement from Teva and Sun for Infringement
  of Protonix® Patent

Business Wire

NEW YORK -- June 12, 2013

Pfizer Inc. announced today a $2.15 billion settlement reached with Teva
Pharmaceuticals Industries, Limited and Sun Pharmaceutical Industries, Limited
for patent-infringement damages resulting from their "at-risk” launches of
generic Protonix® in the United States. The settlement comes after a nearly
10-year legal battle in which Pfizer and Nycomed (now part of Takeda) sought
to enforce the patent for its blockbuster acid reflux medicine. Pfizer and
Takeda will divide the proceeds of the settlement with Pfizer receiving 64
percent.

“We are pleased with today's settlement, which recognizes the validity and
value of the innovation that led to Protonix,” said Amy W. Schulman, executive
vice president and general counsel of Pfizer. “Protecting intellectual
property is vital as we develop new medicines that save and enhance patients’
lives.”

Under the terms of the settlement, Teva and Sun will pay a total of $2.15
billion to compensate Pfizer’s subsidiary Wyeth and Takeda for the damages
they suffered when Teva and Sun launched “at-risk” generic versions of
Protonix prior to the January 2011 expiry of the patent for pantoprazole, the
active ingredient in Protonix. These “at-risk” launches were determined by a
jury in New Jersey federal court to violate United States Patent No.
4,758,579, which is owned by Takeda and was licensed exclusively to Wyeth in
the United States. The parties reached the settlement shortly after the
commencement of a trial to determine damages in the same New Jersey federal
court.

Teva will pay Pfizer and Takeda $1.6 billion and Sun will pay $550 million.
Teva will pay $800 million in 2013 and the remaining $800 million by October
2014; Sun’s entire payment will be made in 2013. As part of the settlement,
both Teva and Sun have admitted that their sales of generic pantoprazole
infringed the patent that was held valid by the court.

“Today’s settlement reflects our resolve to enforce our patents both in and
out of the courtroom,” Ms. Schulman said. “We are proud of the work of the
scientific colleagues who developed this medicine and the lawyers who defended
it."

Contact:

Pfizer Inc.
Media Contact:
Chris Loder, 212-733-7897
or
Investor Contact:
Charles Triano, 212-733-3901
 
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