VIVUS, Inc. (NASDAQ:VVUS) and Teva Pharmaceutical Industries Ltd (ADR) have announced that they have settled their lawsuit involving the generic version of the anti-obesity drug called Qsymia.
The two companies have finally settled the patent lawsuit which was filed by Vivus in a New Jersey Federal Court. The settlement agreement will allow Teva to launch a generic version of Qsymia by December 2024. Vivus’ patent for the drug will expire in 2029, meaning the company will allow Teva to launch the generic drug while the patent is still active. Teva might also be allowed to launch the generic drug earlier than 2024, though under some conditions. Viva announced on Wednesday that Teva would have to pay royalty.
Settlement is good news for investors
The legal battle between the two companies has been going on for three years and the settlement is definitely a welcome relief to investors. Vivus shares rallied by more than 1 percent on Wednesday during after-hours trading following the news about the settlement. The company’s shares have exhibited good performance this year and have so far gone up by 7 percent.
“So far this year, shares of VIVUS are up 7%, which compares unfavorably with an increase of 8.1% registered by the Zacks classified Biomed/Genetics industry during this period,” stated a recent report.
Unfortunately for Teva, it is not the only firm that wants to launch a generic version of the drug. Indian pharmaceutical company, Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) also has plans to launch a generic version of Qsymia. There is an incentive to launch a generic version of the drug because the original one has been experiencing poor sales. This has been attributed to the fact that it is expensive, thus beyond reach for many patients. Both Teva and Dr. Reddy’s plan to take advantage of the unserved market by introducing generic versions that will be more affordable.
Vivus is planning to boost Qsymia sales through promotional and reimbursement initiatives. The firm is focused on making sure that the drug is accessible to patients by making the price friendlier. The company has also invested heavily in a digital campaign that will give more information to consumers.
Vivus stock closed the latest trading session on Thursday at $1.25.
