Forest Laboratories, Lundbeck Sign Settlement Agreement With Sun, Caraco

Forest Laboratories and its wholly-owned subsidiary, Forest Laboratories Holdings and Lundbeck have entered into a settlement agreement with Sun Pharma and Caraco, regarding pending patent infringement disputes. Its about US Patent Re. No. 34712, US Patent No. 6916941, and US Patent No. 7420069, which were licensed to Forest by Lundbeck on an exclusive basis in the US.

The terms of the settlement agreement with Sun Pharma and Caraco is subject to review of the settlement terms by the US Federal Trade Commission. Forest and Lundbeck will provide licenses to Caraco for any patents related to LEXAPRO (with respect to the marketing of Caraco’s generic version of the product as of the date that any third party generic that has properly received final approval from the FDA), other than an authorized generic or the first filer with Hatch-Waxman related exclusivity.

In addition, Caraco will take over the commercialization and sale of several products from Forest’s Inwood business. Caraco will pay Forest an undisclosed advance against royalties and royalties on net sales of these products.

In exchange for an upfront payment (and royalties but only if the technology is used), Sun Pharma will give worldwide license to Lundbeck on certain patent applications related to the synthesis of escitalopram and citalopram. Forest and Lundbeck will reimburse some of Caraco’s legal costs in connection with these patent litigations.