Boston, MA 05/15/2014 (wallstreetpr) – The Switzerland-based drug giant Novartis AG (ADR) (NYSE:NVS) has reached another milestone with the latest patent litigation settlement in the U.S. The company reached a settlement with the U.S. subsidiary of Sun Pharmaceutical Industries.
The agreement touches on the development of a generic version of Gleevec, a patented prescription drug whose patent protection expires in 2019. The settlement permits the subsidiary of Sun Pharmaceutical to develop and market a generic version of Gleevec.
The generic version of Gleevec development by Sun Pharmaceutical’s U.S. subsidiary could hit the shelves in February 2016. It is reported that the U.S. subsidiary of Sun Pharmaceutical has already secured a tentative approval from the U.S. Food and Drug Administration for its generic version of Gleevec. However, the finer details of the patent permitting and settlement are confidential.
The latest patent settlement serves more than just ironing out the conflict between Novartis AG (ADR) (NYSE:NVS) and the Sun Pharmaceutical. It validates Novartis’ patent for Gleevec and also allows Sun Pharmaceutical’s subsidiary to bring a generic version of the drug to market without fear of costly legal action against it.
Novartis has it both ways
Novartis AG (ADR) (NYSE:NVS) provides both patented and generic pharmaceuticals. The company develops and commercializes high-quality generic drugs through Sandoz, a division of the Switzerland drug giant. The company’s ability to develop branded and generic drugs have enabled it to provide a wide range of treatment options to patients. The strategy also supports its business by attracting higher revenue.
Drug development collaboration
Novartis AG (ADR) (NYSE:NVS) announced teaming up with French drug company Servier towards the development and marketing of novel cancer drug candidate that targets apoptosis. The collaboration with Servier is the latest drug development tie-up that Novartis AG (ADR) (NYSE:NVS) has entered. Last month the company agreed to trade $20 billion in assets with GlaxoSmithKline PLC (ADR) (NYSE:GSK). The transaction was such that Novartis would swap its vaccine business with GSK’s cancer drug business. The two giant drug makers also agreed to join forces in the development of consumer healthcare products through a joint venture.
