Pfizer, Ranbaxy settle Lipitor matter

AP reports: Pfizer Inc. and India's Ranbaxy Laboratories Ltd. said June 18 they have settled their patent dispute over the blockbuster cholesterol drug Lipitor, delaying the release of generic versions in the U.S. until Nov. 30, 2011.

Forbes gave a more complete account of the event, and noted an immediate drop in Ranbaxy stock of 5%:

Under the terms of the agreement, Ranbaxy will have a license to sell generic versions of Lipitor and Caduet in the United States, as of Nov. 30, 2011. Ranbaxy will have exclusive marketing rights for 180 days. Ranbaxy will also be able to sell generic versions of Lipitor in Canada, Belgium, the Netherlands, Germany, Sweden, Italy and Australia.

Pfizer and Ranbaxy have also resolved their disputes regarding Lipitor in Malaysia, Brunei, Peru and Vietnam, and regarding hypertension drug Accupril in the United States and Viagra in Ecuador.

However, litigation between the two companies relating to Lipitor will continue in five other European countries -- Finland, Spain, Portugal, Denmark and Romania, Ranbaxy said in a statement.

Apparently, the marketplace had expected more favorable terms for the generic maker Ranbaxy.