Japanese pharmaceutical company Daiichi Sankyo is in the process of acquiring Ranbaxy for up to $4.6 billion. According to PriceWaterhouseCoopers sources, Daiichi would have asked Ranbaxy to clear all its contingent liabilities, since Pfizer had filed many counter litigation suits against Ranbaxy
Sources reported that Ranbaxy on Wednesday entered into an agreement with Pfizer Inc.
To settle most of the patent litigation world-wide involving Lipitor, which will allow it to launch a generic version of the drug from November 30, 2011 in the United States. Lipitor is a cholesterol lowering medicine and is the world’s largest selling drug with world-wide sales of $12.7 billion in 2007
For Pfizer, the agreement removes any uncertainty from its stocks, as now Ranbaxy will be able to launch the drug only in November 30, 2011. Patent challenges by Ranbaxy regarding Lipitor have been underway in numerous markets since 2003.
As Ranbaxy was the first generic challenger to the listed Lipitor patents, it will get exclusivity to launch Lipitor’s generic version for 180 days in the US and an early entry in other markets. Analysts said Ranbaxy could earn $1.5 billion revenue in the exclusive 180 days in the US, where Lipitor has sales of $ 8.3 billion.