Pfizer has reached a $2.15bn settlement with Teva Pharmaceuticals Industries, and Sun Pharmaceutical Industries over Protonix patent-infringement lawsuit in the US.
Following 10-years of litigation over the intellectual property for pantoprazole, the settlement amount will be paid to Pfizer's subsidiary Wyeth and Takeda to cover the damages caused due to the launch of "at-risk" generic versions of Protonix.
Pantoprazole is the active ingredient in Protonix and its patent was supposed to expire in January 2011.
Teva and Sun will pay $1.6bn and $550m respectively, which will be shared between Pfizer and Takeda with the former receiving 64% of the total proceeds.
Sun will make its payment in 2013, whereas Teva will pay $800m and the remaining $800m in 2013 and by October 2014.
Pfizer executive vice president and general counsel Amy Schulman said the settlement recognizes the validity and value of the innovation that led to Protonix.
"Protecting intellectual property is vital as we develop new medicines that save and enhance patients' lives," Schulman added.
