AstraZeneca has reached a settlement with Teva Pharmaceutical Industries which will allow the Israeli drugmaker to sell a generic version of the Crohn’s disease treatment Entocort.

Under the terms of the agreement, the Anglo-Swedish drugmaker has granted Teva a licence to enter the US market with its copycat version of Entocort EC (oral budesonide) on February 15, 2012, subject to regulatory approval “or earlier in certain circumstances”. No financial details have been disclosed.

As part of the settlement, Teva has conceded that two US patents on Entocort are valid and enforceable and would be infringed by the manufacture or sale of its products. It was also noted that Merck & Co, which gets royalties on certain AstraZeneca drugs, has also entered into the settlement agreement.

Teva noted that Entocort capsules had annual sales of approximately $265 million in the USA.

Teva Lou Gehrig’s disease drug fails
News of the deal came just after Teva presented disappointing results from a Phase II trial designed to assess talampanel in reducing disease-related functional deterioration in amyotrophic lateral sclerosis (ALS) patients.

Moshe Manor, Teva's head of global branded products, said that despite the firm’s hopes to advance the treatment of this debilitating condition, also known as Lou Gehrig’s disease, “talampanel did not succeed in demonstrating the required efficacy, although safety was established”.