Earlier on Wednesday, the Indian developer of generic drugs – Dr. Reddy’s Laboratories Ltd- announced that its lawsuit with Pfizer Inc. regarding a generic version of Pfizer’s cholesterol drug Lipitor has been settled.
According to Dr. Reddy’s, the lawsuit was regarding generic Lipitor doses of 10, 20, 40, and 80 milligrams. Although the company refrained from revealing the terms of the agreement, it said that the Justice Department and the Federal Trade Commission would review the settlement.
World-best seller Lipitor, or atorvastatin, brings over $11 billion worth of annual revenues for Pfizer. However, Lipitor has started losing its international patent protection and is expected to lose its US patent protection on Nov. 30, which will permit generic drugmakers like Dr. Reddy’s to market subsidized versions of the drug at competitive prices.
In 2009, Dr. Reddy’s applied for the approval of a generic version of Lipitor, following which Pfizer filed a lawsuit charging Dr. Reddy’s with patent infringement of Lipitor.
In mid-day trading, Dr. Reddy’s shares jumped 40 cents to $32.88, while Pfizer’s stock hiked 20 cents to $19.08.