Pfizer Inc said India’s Sun Pharmaceutical Industries and Israel’s Teva Pharmaceuticals Industries would pay $2.15 billion (Rs 12,500 crore) to settle a patent infringement lawsuit related to its acid-reflux drug Protonix.
Sun Pharma will pay $550 million (Rs 3,200 crore) this year. It had set aside Rs. 584 crore last November towards potential damages to Pfizer and will now have to shell out a further Rs. 2,616 crore as final settlement.
“This is not a very positive out-of-court settlement. The agreed amount is way too high,” said Daljeet Kohli, head of research at brokerage IndiaNivesh in Mumbai. “It will also restrict Sun’s ability to look for acquisitions.”
Israel-based Teva, the world’s largest generic drugmaker, will pay $1.6 billion — half this year and the rest by October 2014.
Sun Pharma closed little changed at Rs. 980.70.