After a period of push and pull, Allergan PLC (NYSE:AGN) and partner Adamas Pharmaceuticals Inc (NASDAQ:ADMS) have agreed to clear the hurdle for Amneal Pharmaceuticals to launch a copycat of their Alzheimer’s drug called Namzaric. However, Amneal’s coming to market with a generic version of Namzaric will not be fast as it will have to wait until January 1, 2025.
Allergan and Adamas hold rights to Namzaric and they have been blocking rivals trying to bring copycats of Namzaric on the market. However, they have also reached settlements with a number of drug companies regarding the launch of generic versions Namzaric and the deal with Amneal is the latest in those patent settlements.
Allergan and Adamas filed a lawsuit against Amneal after they learnt that the rival was out to clip away market share from Namzaric with a generic version of the drug. Their claim centered on violation of Namzaric patent and there has been a tug-of-war between Allergan and Adamas on one side and Amneal on the other.
However, the warring parties reached a point where they decided that it was better to make nice. That was when they agreed to resolve the patent infringement dispute and pave the way for Amneal to also make money selling generic Namzaric.
$12.8 million in quarterly sales
The only major condition that Allergan and Adamas have put in the deal is that Amneal should be patient until 2025 to bring its rival drug on the market. However, the parties didn’t disclose the financial terms of their settlement, but you should know that Namzaric generated sales of $12.8 million in 2Q2016.
What to keep in mind is that Allergan has U.S. rights to Namzaric, while Adamas has rights to the drug outside the U.S.
Dispute with Amerigen remains
Amerigen Pharmaceuticals is another drug company that Allergan and Adamas are trying to block from bringing a copycat of Namzaric on the market. They have sued Amerigen for violating Namzaric patent.