Ranbaxy in out-of-court pact with AstraZeneca for Nexium

Font Size

Print

Feedback

Email

Discuss

Mumbai, Apr 15: Ranbaxy Pharmaceuticals Inc (RPI), a wholly-owned subsidiary of Ranbaxy Laboratories, has reached a settlement agreement with AstraZeneca on the US sales of the blockbuster drug, Nexium. A patent infringement litigation had been filed by AstraZeneca following Ranbaxy’s submission of an abbreviated new drug application (ANDA) for a generic version of esomeprazole magnesium (Nexium). Recently, Ranbaxy had entered into similar out-of-court deals with US-based majors for selling generic versions of top selling drugs in the US.

Apart from the settlement, the companies have also entered into two separate agreements designating Ranbaxy as the American distributor for the authorised generic versions of Felodipine capsules and Omeprazole 40-mg tablets. Ranbaxy will be compensated for its distribution services on standard commercial terms. “We are pleased with the agreement which will provide certainty as to the launch of a generic formulation of esomeprazole magnesium in the US market,” said Malvinder M Singh, CEO and managing director of Ranbaxy Laboratories Ltd. The settlement agreement will allow Ranbaxy to commence exclusive sales of a generic version of Nexium under a licence from AstraZeneca on May 27, 2014. During the 180-period following the date, RPI will distribute the only generic esomeprazole magnesium product in the US market, stated a company release.