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Mylan Settles Patent Litigation Related to Pfizer's Viagra - Analyst Blog

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Mylan MYL announced that it has entered into an agreement with Pfizer Inc. PFE to settle patent litigation relating to Mylan's abbreviated new drug application for its generic version of Pfizer’s Viagra (25 mg, 50 mg, and 100 mg). Viagra, indicated to treat erectile dysfunction, generated U.S. revenues of approximately $1.3 billion for the twelve months ending Dec 31, 2014, as per data provided by IMS Health.

As per the terms of the agreement, Mylan will be able to launch its generic version of Viagra in the U.S., if approved by the FDA, on Dec 11, 2017 or before under certain conditions. Mylan will make royalty payments to Pfizer based on sales of the drug.

We note that Pfizer also settled a patent litigation with Teva Pharmaceutical Industries Ltd. TEVA related to the latter’s generic version of Viagra. Under the terms of the agreement, Teva will be allowed to launch its generic version of Viagra in the U.S. in Dec 2017 or earlier subject to certain circumstances.

Meanwhile, Mylan announced that it has provided Perrigo Company PRGO with a notice of its filing of the premerger notification, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with the U.S. Federal Trade Commission and the U.S. Department of Justice Antitrust Division regarding its proposed acquisition of Perrigo.

Mylan has made a proposal to acquire Perrigo. As per the terms of the proposal, Perrigo shareholders would receive $205 per share in a combination of cash and stock. The transaction is valued at approximately $29 billion, which represents a premium of over 25% on Perrigo’s unaffected trading price as on Apr 3, 2015. Perrigo confirmed that it has received the offer and stated that its board will deliberate on it (read more: Mylan Proposes to Acquire Perrigo, Sets Both Stocks Soaring).

Mylan carries a Zacks Rank #3 (Hold). Valeant Pharmaceuticals International, Inc. VRX is a better-ranked stock in the health care space carrying a Zacks Rank #1 (Strong Buy).

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