Bayer, Barr do deal over Yasmin

Forbes reports:

Bayer AG. said it agreed to supply a generic version of its Yasmin contraceptive to Barr Pharmaceuticals Inc. but will continue to pursue an appeal against a court decision in favour of Barr, which voided Bayer's U.S. patent on Yasmin.

Barr will sell the copycat version of the Yasmin pill in the United States only and Bayer will receive a fixed percentage of the revenues, Bayer said in a statement, without disclosing financial details.

The deal is a risk-mitigator. Forbes notes:

Should Bayer fail to defend its patent in court Bayer will still get a share of the U.S. market for generic versions of its best-selling pill.

But the deal will also allow Barr to stay in the market even if Bayer wins the patent dispute, albeit with Barr paying higher royalties to Bayer.

See also

http://ipbiz.blogspot.com/2008/04/bayer-appeals-yasmin-loss.html