Pharma firm Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) has settled with Pfizer Inc. (NYSE:PFE) and the Swiss Nycomed International Management, paying the two companies $1.6 billion to resolve a patent dispute from 2007.
The court battle centered on Teva’s generic Protonix tablets, which treat excess stomach acid.
Teva will pay $800 million in 2013 and the rest in 2014, of which $560 million may be covered by its insurance, according to a news release.
Based in Israel, Teva is a leading generic drugs maker operating in 60 countries that emphasizes affordability. Nycomed is owned by Japan’s Takeda Pharmaceutical Company Limited (TYO:4502).
According to Reuters, a New Jersey court ruled in Pfizer’s favor in April 2010, ending a 10-year legal battle. Sun Pharmaceutical Industries Ltd. (BOM:524715), from India, will also pay $450 million to Pfizer in the settlement.