Teva Pharmaceutical Industries Ltd. (TEVA) announced it has entered into a settlement agreement with Wyeth (WYE)/Pfizer (PFE) and Altana (AAAGY.PK)/Nycomed to resolve all claims relating to Teva's sales, commencing in December 2007, of its 20 mg and 40 mg generic Protonix tablets. Teva has agreed to pay $1.6 billion to Wyeth/Pfizer and Altana/Nycomed for the settlement of the patent infringement case.
Teva will pay $800 million in 2013 and the remainder in 2014. As a result of the settlement, Teva expects to incur a charge of approximately $930 million in the second quarter of 2013.
Teva believes it may have up to $560 million of net insurance coverage in connection with this settlement, subject to recovery from the insurance carriers.
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