Akzo Nobel’s healthcare business, Organon, yesterday said it had settled a patent litigation suit with Barr subsidiary Duramed Pharmaceuticals for a copycat version of its contraceptive Mircette (desogestrel/ethinyl estradiol).
Under the terms of the deal, which has yet to be agreed, Barr would pay Organon $142 million to settle the litigation and to acquire all rights relating to Mircette, including the US marketing approval. Barr would also pay almost $14 million to patent owner Saviant Pharmaceuticals.
The patent litigation is currently before the US District Court for the District of New Jersey, which has agreed to stay any further proceedings to allow all parties involved to negotiate a settlement agreement. Barr, which markets a generic version of Mircette under the trade name Kariva, anticipates taking a charge of $62.3 million, or approximately $0.37 earnings per diluted share, in its financial statement for year ended June 30, 2005, related to the transaction.
“This acquisition ensures that there will continue to be both a brand and generic version of Mircette in the marketplace, and removes the risk of a possible injunction against the continued sale of Kariva,” said Bruce L. Downey, Barr’s chairman and chief executive.