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Pharmaceutical industry

Merck Settles Patent Dispute with Glenmark over Cholesterol Drug Zetia

Strategic Insights

— 1 min read

Merck & Co. has settled a patent dispute with Glenmark Pharmaceuticals regarding the cholesterol drug Zetia, one of Merck's best-selling products. The lawsuit had been scheduled to go to trial, but the parties have agreed to a settlement that allows Glenmark to start selling its generic version of Zetia on December 12, 2016. Zetia is a blockbuster drug with annual U.S. sales of approximately $1.4 billion, according to Par Pharmaceutical Co., which is Glenmark's partner on the generic. The patent for Zetia was set to expire on April 25, 2017.

Key Takeaways:

  • Merck settled a patent dispute with Glenmark Pharmaceuticals over the cholesterol drug Zetia, allowing Glenmark to start selling its generic version on December 12, 2016.
  • The patent for Zetia was set to expire on April 25, 2017.
  • Zetia is one of Merck's biggest-selling products, with annual U.S. sales of approximately $1.4 billion, according to Par Pharmaceutical Co.
  • Par Pharmaceutical Co. is Glenmark's partner on the generic and will market and distribute the generic.
  • Merck and Glenmark will share profits from the generic sale.
  • The settlement comes as Merck and Glenmark are also involved in the development of the newer cholesterol drug Vytorin, which contains Zetia and Zocor.
  • Zetia was launched in the U.S. in 2002 and is one of the two components of Vytorin.

Statistics:

  • Annual U.S. sales of Zetia: $1.4 billion (Par Pharmaceutical Co.)
  • Expiration date of the Zetia patent: April 25, 2017
  • Date for Glenmark to start selling its generic version of Zetia: December 12, 2016
  • Merck shares rose: 76 cents, or 2.3 percent, to close at $34.25
  • Par Pharmaceutical shares rose: 36 cents to close at $27.04

Sources:

  • Euclid Infotech, "Merck & Co. Settles Patent Dispute with Glenmark Pharmaceuticals over Cholesterol Drug Zetia" (date not specified)
  • Contify.com, "Merck & Co. Settlement with Glenmark Pharmaceuticals over Zetia to Go into Effect on December 12, 2016" (date not specified)

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