BioDelivery Sciences International, Inc. (NASDAQ:BDS) has announced that it has struck a settlement agreement with Israeli-based generics firm, Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE:TEVA) in BELBUCA lawsuit.
The new settlement agreement between the two companies marks a resolution of a patent battle which BDSI had filed against Teva over the BELBUCA buccal film (CIII). The patent litigation case had been filed in a U.S District Court in Delaware.
“We are pleased to have resolved our BELBUCA lawsuit with Teva. We believe that this settlement, together with our previously announced settlement of the lawsuit with Teva regarding BUNAVAIL®, provide additional certainty around our patent portfolio and the future potential for our two commercialized products,”stated BDSI president, Scott Plesha.
Plesha also added that settling the lawsuit will allow the two companies to avoid expensive costs involved in litigation cases. BDSI filed the lawsuits against Teva for the generics version of BELBUCA which the Israeli firm is looking to market in the U.S. The Israeli-based biopharma filed for three three Abbreviated New Drug Applications (ANDAs) with the Food and Drug Administration (FDA). However, BDSI filed the lawsuit against Teva accusing it of patent infringement on two patents held by BioDelivery Sciences.
The settlement between the two companies is currently pending review by the U.S. Federal Trade Commission and the U.S. Department of Justice as well as the Department of Justice in the U.S. The two companies have struck a non-exclusive license agreement that will allow Teva to start selling its generic version of BELBUCA in the United States. The deal was signed a few weeks ago under various conditions although the terms of the agreement were not disclosed.
The settlement highlights the latest news surrounding Teva which has been having a tough few months. The company previously announced plans to lay off roughly 14,000 of its global workforce as part of its plan to cut down on expenses. This ended up sparking outrage from workers who took to the streets of Israel to protest against the decision.
BDSI stock closed the latest trading session on Wednesday at $2.25 after tanking by2.17 percent from the previous close.