GlaxoSmithKline plc (ADR) (NYSE:GSK) To Receive $235M From Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) As Part Of Coreg Patent Trial

GlaxoSmithKline Plc

GlaxoSmithKline plc (ADR) (NYSE:GSK) will receive $235 million from Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) as part of a legal battle between the two over a Coreg patent.

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Teva was ordered to pay the $235 million by a U.S jury in Wilmington, Delaware to GSK after it infringed on a patent for a blood pressure drug known as Coreg. The jury found Teva guilty of infringing the patent during a court session on Tuesday. The court battle revolved around the sale of a generic version of the drug with a label claiming that the drug could be used to treat chronic heart failure.

Teva’s efforts to invalidate the patent were futile

Teva had tried to contend that the patent was invalid but its efforts were turned down and the jury ruled in favor of GSK. The latter is expected to receive $234.1 million in compensation from Teva as part of lost profits and an additional $1.4 million in royalties. GSK also stated that it was happy with the jury’s decision though its opponent was quite disappointed and is even considering an appeal.

“We still intend to present our equitable defenses to the court at a separate hearing which could eliminate the liability determination or significantly reduce the assessed damages. We are also considering an appeal,” stated Teva.

Teva’s generic version of Coreg, known as carvedilol was approved by the FDA in 2007. However, it changed the label of the drug in 2011 to add the treatment of chronic heart failure as one of the conditions that can be treated by the drug which according to GSK is still under the patent.

According to GSK, Teva caused healthcare providers to infringe on the Coreg patent through the sale and marketing of the generic drug as a Coreg substitute. It is currently not clear whether Teva will be given a chance to contest the jury’s decision, but if not, it will be forced to pay the amount to GSK.

GSK stock closed the latest trading session on Wednesday at $43.62 after gaining by 0.46 percent compared to the value of the stock during the previous close.

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