When Teva Pharmaceutical Industries launched a generic version of Protonix in 2007 before its patent expiration, it set aside $670 million to compensate Pfizer for lost profits on the drug. But with a settlement announced today, the company is finding itself $1.6 billion short.
Pfizer catapulted itself into the vaccine big leagues in 2009 by merging with Wyeth, and continued demand for Prevnar 13 has seen it consolidate its position. Analysts predict its sales could dwarf other vaccines--hitting $6.7 billion in 2018--but recent quarters suggest it will be a bumpy ride.
Turns out, Teva Pharmaceutical Industries' ($TEVA) at-risk launch of copycat Protonix was really, really risky. The company now says it's looking at up to $2 billion in legal losses, to compensate Pfizer ($PFE) for lost profits on the drug.
It's a state court ruling. It directly affects only one drugmaker. But the Alabama Supreme Court's decision to allow a patient to sue Pfizer for damages could ripple through the industry--and not in a good way for branded drugmakers.
Another marketing settlement has been wrung out of a Big Pharma player, with Pfizer ($PFE) this time paying $55 million and change to clear up a problem it acquired.
Protein Sciences will lease two buildings at Pfizer's Pearl River, NY, site to create a production line for its recombinant influenza vaccine Flublok.
Pfizer ($PFE) has racked up a trifecta of legal deals, from a $55 million Protonix settlement with the feds to a $491 million Rapamune marketing deal that involves a misdemeanor guilty plea. Sandwiched in the middle: A $67.5 million deal to wrap up a class-action lawsuit filed by former Wyeth shareholders, who claimed they were misled about the risks of its antidepressant Pristiq.
Amid the all the numbers in Pfizer's ($PFE) third-quarter earnings announcement, the drugmaker disclosed one particularly newsworthy figure: A $491 million charge for a Rapamune marketing settlement. As Dow Jones first reported, the company made a deal with the U.S. Justice Department to resolve the longstanding probe, which Pfizer inherited when it bought Wyeth in 2009.
More job cuts at Pfizer ($PFE). The world's biggest drugmaker is shedding 300 from its Canadian workforce, or about 11% of its employees in the country. Hardest hit will be sales and marketing, particularly in primary care.
When you buy a company, you inherit its legal problems. No one knows this better than Pfizer ($PFE), which is fighting thousands of lawsuits over drugs it acquired along with Wyeth in 2009. And now, the drugmaker can add a shareholder class action to that list.