Tuesday, April 5, 2011

Cubist (CBST) Settles with Teva (TEVA) Over Patent Dispute

Cubist Pharmaceuticals (NASDAQ:CBST) announced they've come to a settlement with Teva Pharmaceuticals, Inc. (NASDAQ:TEVA) which allows the Israeli-based drug company to be licensed to produce a generic version of its blockbuster antibiotic, Cubicin. The new generic version could be come to market as early as 2017, according to Cubist.

Terms of the agreement are Teva can launch the new version on June 24, 2018. If Teva is able to secure a six month pediatric exclusivity, the launch date will be moved up to December 24, 2017.

Teva also must acquire ingredients used to develop the drug from Cubist, with the price of source materials including a percentage of Teva's net profit on sales of its generic version, which will be called daptomycin.

The agreement is in relationship solely to the U.S. market, and settles the March 2009 patent case Cubist had brought against Teva.

Teva was trading at $49.97, falling $0.07, or 0.14 percent, as of 9:00 AM EDT. Cubist Pharmaceuticals was soaring at the open, jumping to $28.96, gaining $3.71, or 14.69 percent, as of 9:02 AM EDT.

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