Pfizer has settled a dispute with Teva Pharmaceuticals regarding generic versions of epilepsy drug Neurontin, ending a federal court trial.
Pfizer had claimed that Teva and its Ivax unit produced copies of the drug that infringed on a patent that does not expire until 2017.
As a result, the company sought compensation for lost profit after sales of the drug plunged dramatically from $2.5bn to $150m due to what Pfizer argues as a direct result of low-cost competition.
Under the terms of the agreement, Teva will continue to sell the copy under a licence from Pfizer, although financial details have not been disclosed.
Pfizer and Teva have been at loggerheads due to the drug before, and a 2007 federal appeals court saw a US judge’s decision that Teva had not infringed upon Pfizer’s patent overruled.