Both companies put a positive spin on the settlement, the full details of which have not been made public. Said a spokesman for J&J:
"This settlement compensates us for loss caused by their at-risk launch and recognizes the patent is valid and enforceable".Investors must have liked the result too, since both companies' shares rose on news of the deal, which looks a clever one. As the Reuters report notes:
"The settlement comes as US antitrust regulators and Congress are taking a closer look at patent settlements between brand and generic drugmakers amid allegations they shortchange consumers by delaying the arrival of low-cost generic drugs while the companies profit.The deal is said by Teva to remain contingent on the US District Court for the District of New Jersey, which is seised of the patent litigation suit, upholding the validity and enforceability of J&J's patent.
Many settlements that have drawn objections involved a payment from brand companies to generic firms -- what critics call "pay-for-delay" deals. But Natixis Bleichroeder analyst Corey Davis noted the Teva-J&J settlement involved the opposite -- a payment from Teva back to J&J".
"By not having any payments from the innovator, the (Federal Trade Commission) can have little basis to complain," Davis said in a research note".