Pfizer Stock Price Rises on a $2.15 Billion Protonix Accord

on Jun 12, 2013

Pfizer Inc. (NYSE:PFE), the New York-based pharmaceutical company, said today, June 12, that it had reached a $2.15 billion settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. over unauthorised sales of generic versions of its Protonix heart drug in the US, which have been the subject of a nearly 10-year long legal battle.

The Pfizer stock price has risen by 24 US cents, or almost one percent, to 28.66 in pre-market trading today on the New York Stock Exchange.
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Israel-based Teva and Mumbai-based Sun conceded today in court that they had infringed a patent related to Pfizer’s Protonix medicine, a proton pump inhibitor used to treat the effects of the gastroesophageal reflux disease. The two companies had argued that the patent covered an obvious variation of earlier patented compounds in the same family as Protonix but those arguments were rejected in 2010 by a federal jury in Newark, New Jersey. The settlement has come shortly after the same New Jersey court started a trial to determine damages.

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According to the terms of the settlement, Sun and Teva will have to pay $2.15 billion in compensation, with Teva paying $1.6 billion and Sun $550 million. Teva will pay the sum in two equal parts of $800 million – one in 2013 and the other by October 2014. Sun will pay by the end of this year.
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Sixty-four percent of the settlement will go to Pfizer, while its partner Takeda Pharmaceutical Co will receive the rest.
“We are pleased with today’s settlement, which recognizes the validity and value of the innovation that led
to Protonix,” Amy Schulman, Pfizer’s general counsel, said in the statement. “Protecting intellectual property is vital as we develop new medicines that save and enhance patients’ lives.”
**The Pfizer stock price (pre-market) was $28.89 as of 14.42 GMT, 12.06.2013**


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