Teva, Pfizer Reach Patent Deal

Teva will pay $70 million.
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Teva Pharmaceutical Industries

(TEVA) - Get Report

announced the settlement of a patent dispute that will see it pay $70 million to drug giant

Pfizer

(PFE) - Get Report

.

The agreement resolves the patent litigation filed by Pharmacia, a subsidiary of Pfizer, against Teva's Sicor unit dealing with sales of a generic version of the anticancer drug idarubicin. The arrangement also settles a patent suit brought by Pfizer over Teva's sale of generic azithromycin, an antibiotic.

Idarubicin is sold under the brand name Idamycin by Pfizer. The company markets azithromycin as Zithromax.

Teva will continue to market its generic versions of the drugs. Teva also has an option in 2007 to sell generic epirubicin, a chemotherapy drug sold by Pfizer as Ellence, prior to the patent expiration next August.

Shares of Teva were up 1.8% to $32.30, while Pfizer was down 0.2% at $27.