The seven-year legal battle over AMRI’s patents for the popular Allegra allergy medicine has ended with a settlement between the Albany pharmaceutical research and development company and generic drug manufacturers.
AMRI, formerly known as Albany Molecular Research Inc., announced today its settlement with Sanofi-Aventis U.S., Teva Pharmaceuticals USA and Barr Laboratories. The settlement, which also involves AMRI subsidiary AMR Technology, promises to provide the Albany company with millions of dollars in sublicense fees and royalties. That money will come from the use of its patented active ingredients in generic allegory medicine.
Under the agreement, AMRI would allow Sanofi-Aventis to sublicense patents related to Allegra and Allegra D-12 to Teva and Barr, which in 2005 both launched generic versions of Allegra. The deal, which is subject to review by the Federal Trade Commission and U.S. Attorney General, requires Sanofi-Aventis to pay an upfront $10 million sublicense fee plus royalties for the sale of products containing Allegra and Allegra D-12.
“This agreement to settle patent litigation diversifies the number of products from which AMRI will receive royalty payments, removes uncertainty related to an at-risk launch of a generic version of Allegra D-12 and affirms the validity of our patents,” said Thomas D’Ambra, AMRI’s chairman, president and chief executive officer.
Despite the promise of more revenue, AMRI’s stock fell almost 4 percent Wednesday morning to $9.18 per share.