The Wall Street Journal-20080130-Wyeth Plans Generic Protonix- Litigation With Teva to Continue

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Wyeth Plans Generic Protonix; Litigation With Teva to Continue

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Wyeth said it is introducing a generic version of its blockbuster drug Protonix, signaling that the company has been unable reach a settlement with Teva Pharmaceutical Industries Ltd. that would protect the heartburn drug's exclusivity.

Teva, a big Israeli generic-drug maker, is embroiled in a lawsuit filed by Wyeth claiming a violation of Protonix's patent, which is set to expire in 2010. Teva introduced a generic version of the drug in December, eating into Protonix's sales, but then agreed to temporarily halt selling its rival product, known as pantoprazole, as the companies engaged in settlement talks.

Protonix, one of Wyeth's top sellers, posted $1.45 billion of sales in the first nine months of 2007. Wyeth yesterday said its generic version would be distributed by Prasco Laboratories, a closely held Cincinnati company. Wyeth spokesman Doug Petkus said the Madison, N.J., company would continue its litigation with Teva, and noted that Wyeth's move gives Teva the option to resume selling its version of Protonix.

Wyeth Chief Executive Bernard Poussot said his company would continue to seek an injunction against any infringement of Protonix's patent. He said the company would seek monetary damages from Teva.

A Teva spokeswoman declined to comment on what Wyeth's generic version means for settlement talks or whether Teva will resume sales of its own generic. In a news release, Teva said the standstill agreement had been terminated.

A steep drop in Protonix sales, which would be expected in the face of generic competition, would deliver another blow to Wyeth, which has tried to win approval of some new drugs, including Pristiq for menopause symptoms and bazedoxifene for osteoporosis.

Wyeth has said it is considering reducing its work force by about 10% in the next three years, as it grapples with generic competition as well as the drug-pipeline setbacks. In a note to investors after Wyeth's announcement yesterday, Goldman Sachs Group Inc. said it expects relatively flat earnings a share for Wyeth from 2008-10. Shares of Wyeth were down 61 cents, or 1.5%, at $41.04 in 4 p.m. New York Stock Exchange composite trading.

If a court were to eventually side with Wyeth in the patent suit, Teva may have to pay triple any damages awarded to the patent holder.