AstraZeneca reaches agreement with Teva over Nexium and Prilosec US patent litigations

Published: 8-Jan-2010

UK drugmaker AstraZeneca has settled a US patent row with Israel\'s Teva Pharmaceutical Industries over the proposed generic version of Nexium delayed release capsules (esomeprazole magnesium) for the treatment of heartburn.


UK drugmaker AstraZeneca has settled a US patent row with Israel's Teva Pharmaceutical Industries over the proposed generic version of Nexium delayed release capsules (esomeprazole magnesium) for the treatment of heartburn.

AstraZeneca has granted a licence allowing Teva to enter the US market with its generic esomeprazole on 27 May 2014, when the first of its patents expire.

US sales of the medicine fell 7% to $2.1bn (£1.3bn; Euro 1.5bn) in the first nine months of last year, while global sales were flat at $3.7bn (£2.3bn; â"šÂ¬2.6bn).

Teva has conceded that all patents at issue in its US Nexium patent litigations are valid and enforceable. The company has also conceded that six Nexium patents would be infringed by the manufacture or sale of esomeprazole.

The two companies have also agreed separately to settle patent litigation related to Prilosec (omeprazole) under which Teva will make a payment to AstraZeneca for past infringing of sales.

Merck & Co, which receives revenues from both generic products, has also entered into a settlement agreement.

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