Europe's largest drugmaker, GlaxoSmithKline, and fellow major Novartis have reached a settlement relating to sales of the latter's generic version of GSK's blockbuster antibiotic Augmentin (amoxicillin/clavulanate).
Under the terms of the deal, Novartis, which sells the drug in the USA through its generics unit Geneva Pharmaceuticals, will pay GSK an undisclosed single-digit royalty on its sales of Augmentin from July 2002 through June 2006 to settle claims that it used a stolen strain of the bacteria to produce its version of the drug. The royalties involved are not expected to have a significant financial impact on either business.
The agreement follows a decision earlier this year by the USA's International Trade Commission to reverse a prior verdict by one of its administrative judges who ruled that the legal dispute in question should not go to trial (Marketletter June 23).
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