Privately held Purdue Pharma and Teva Pharmaceuticals USA, a subsidiary of Israel's Teva (TASE, Nasdaq: TEVA), have agreed to end their lawsuit concerning Purdue patents on OxyContin tablets, Purdue said on Tuesday.
Clal Finance Batucha analyst Yisca Erez called it a psychological loss for Teva, but practically speaking it's a victory, she said.
Teva has been marketing an 80-mg generic version of OxyContin since March 2004, and will shortly cease to market the drug in keeping with its settlement with Purdue. But Teva already made its money during its two years of essential exclusivity in marketing, and it isn't paying Purdue any compensation, Erez points out.
Brand sales of the 80-mg version reached $700 million in 2004. Teva made $150 million to $200 million on the drug a year, as it had been the only generic drug company to launch a version. The other companies sat back ad waited for the outcome of the patent lawsuit.
Purdue said that under the agreement, Teva will cease selling its oxycodone products at a future date and Stamford, Connecticut-based Purdue will not pursue damages against Teva.
OxyContin is a narcotic used to treat moderate to severe pain.
FDA website: FDA Strengthens Warnings for OxyContin
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