Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA ; TASE: TEVA) and Teva Pharmaceuticals USA, Inc. have entered into an agreement with Cephalon, Inc. (Nasdaq: CEPH) to settle their pending patent infringement disputes in the US and the UK over Provigil (modafinil) tablets.
Provigil is a mood-brightening and memory-enhancing psychostimulant which enhances wakefulness and vigilance.
Cephalon will grant Teva a non-exclusive royalty-bearing right to market and sell a generic version of Provigil. Teva's license in the US will become effective in October 2011 absent a pediatric extension for Provigil, which would delay the entry date by six months (to April 2012). Outside the US, the parties agreed to comparable terms for the license effective date, which generally allow for entry in October 2012. An earlier entry by Teva in any of the territories may occur based upon the entry of another generic version of Provigil.
The companies also agreed to a series of business arrangements related to modafinil. Teva has agreed to grant to Cephalon a non-exclusive license, effective immediately, to its worldwide intellectual property rights related to the manufacture, development and formulation of modafinil in exchange for royalty payments. Cephalon has also agreed to enter into certain arrangements with Teva related to Teva's manufacture and supply of the active pharmaceutical ingredient modafinil.
The terms of the agreement are subject to review by the US Federal Trade Commission.
Financial terms were not disclosed.
Published by Globes [online], Israel business news - www.globes.co.il - on December 11, 2005