Pfizer settles patent litigation involving NSAID pain medications

Additionally, following key court rulings in favor of Celebrex, claims regarding Celebrex, a pain treatment, will also be resolved as part of the settlement.

The announcement follows favorable rulings in which federal and New York state court judges overseeing a majority of the personal injury cases ruled that the plaintiffs’ lawyers failed to present reliable scientific evidence to prove Celebrex can cause heart attacks or strokes at its most commonly prescribed dose. These rulings would have likely limited the scope of these cases had the litigation continued. By settling these matters now, the parties are minimizing the future cost and disruption inevitably associated with litigation.

The personal injury settlements will resolve more than 90% of the known personal injury claims brought by law firms representing persons who allege that Pfizer’s non-steroidal anti-inflammatory (NSAID) pain medications were the cause of a heart attack, stroke or other injury. Pfizer will work to finalize agreements with each of the law firms with which it has agreements in principle before the end of 2008.

Pfizer also has reached an agreement in principle to settle payor class action consumer fraud cases involving Bextra and Celebrex in which plaintiffs allege economic loss relating to the promotion of these medications. The settlement will resolve these cases on a nationwide basis and is subject to approval by the appropriate courts.

In addition, Pfizer has reached agreements in principle to resolve claims brought by 33 states and the District of Columbia, primarily relating to alleged Bextra promotional practices. Under these settlements, Pfizer will make a total payment of $60 million to the states and adopt compliance measures that complement policies and procedures previously established by the company.

Pfizer has insurance coverage for a portion of the personal injury settlements and is seeking to recover payments to which it believes it is entitled from its insurance carriers. Pfizer will reflect these significant, non-recurring items as a third quarter pre-tax charge of $894 million to reported earnings.

Joseph Feczko, chief medical officer of Pfizer, said: “Pfizer stands by the safety and efficacy profile of Celebrex. It is one of the most rigorously and continuously studied drugs in the world, as evidenced by its approval and use in 111 countries during the past 10 years across several different pain indications. We believe that putting these matters substantially behind us should better enable physicians to consider Celebrex purely on the strength of its clinical data, and its ability to meet the diverse needs of patients in pain.”