Teva, Cephalon settle patent dispute
Israeli drug maker, U.S.-based biopharmaceutical company agree to settle dispute over patent for fatigue treatment Provigil
Shares of Cephalon rose $3.19, or 6.1 percent, to $55.28 in midday trading on the Nasdaq at more than three times their average volume. Cephalon shares reached a new 12-month high of $55.50.
Under the agreement, Cephalon will grant Teva a non-exclusive royalty-bearing license to make a generic form of Provigil effective in October 2011. Also, Teva will immediately grant Cephalon a non-exclusive license to certain rights concerning the manufacture of generic drugs and supply Cephalon with modafinil, the active ingredient in Provigil.
Financial terms of the agreement were not disclosed. Both parties will file to dismiss their respective lawsuits.
In November, Cephalon announced it expected a generic version of Provigil to enter the market in 2006. Cephalon said it expects 2005 sales of Provigil to total $500 million to $525 million, slightly less than half its overall sales for the year.
The settlement must still be approved by the Federal Trade Commission, the companies said.
Teva American depositary shares climbed 43 cents to $44.31 on the Nasdaq.
