A US court yesterday ordered Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) to pay $235 million compensation to GlaxoSmithKline for violation of the latter's patent for its Coreg drug, used to treat chronic heart failure.
The prevalent practice in the generic drug industry is for generic companies to attack a patent with a claim that it has expired, while launching a generic version of it. The innovative drug companies characteristically claim that the patent is still valid, thereby gaining more time to enjoy exclusivity for the original drug.
A generic drug company launching the first generic version of an innovative drug receives a certain period of exclusivity for its generic version, but runs the risk that a court will rule that the original patent did not expire, in which case the generic company has to pay damages to the ethical drug company.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 22, 2017