Bethesda, Maryland Pharma Company Settles Litigation, Reaches Agreement with Defendant

Bethesda, Maryland Pharma Company Settles Litigation, Reaches Agreement with Defendant Filing a lawsuit can lead to a trial, a verdict, and sometimes damages, with much acrimony along the way. But, not always. Bethesda, Maryland-basedSucampo Pharmaceuticals has settled its litigation against Anchen Pharmaceuticals and Par Pharmaceuticals and has entered into a long-term licensing agreement with them.

Sucampo had sued the two companies over their attempt to get approval for a generic version of Sucampo’s flagship drug Amitiza. Drug companies often take legal action to try to block or delay the introduction of generic versions of their patented drugs by competitors. At the time, Sucampo vowed to vigorously defend its intellectual property against infringement.

The settlement provides that Sucampo will grant Anchen and Par a non-exclusive license to sell their generic version of Amitizabut not until 2021, except in certain circumstances. The terms of the agreement provide for a split of gross profits until Sucampo’s patents on the drug have expired. The agreement also provides that Sucampo and Par will enter into an agreement for manufacturing and supply of the drug, if Par decides to go forward with producing an authorized generic. Other provisions of the confidential settlement agreement remain undisclosed.

Sucampo’s CEO claims the settlement of the litigation will help company sales and help establish the drug in the marketplace. He also says the out-of-court settlement will benefit physicians and patients.

All of the parties have agreed to a dismissal with prejudice of the litigation that had been underway in a federal district court.

While the terms of the negotiated settlement were not completely revealed, it appears that Sucampo found a way to protect its product while also securing a share of future profits from a generic version produced by rivals.

If you are involved in a business dispute, experienced litigators can help you defend your position in court or find alternative solutions that may prove even more beneficial than a verdict. The experienced Rockville and Bethesda, Maryland commercial litigation attorneys at Longman & Van Grack have handled all types of cases and have helped clients get results, in and out of court. Call us at (301) 291-5027 for a confidential consultation.