Glaxo settles Novartis dispute
Friday 11 July 2003
Glaxosmithkline, the UK's biggest drug maker, has settled a legal dispute with its European rival Novartis, which it accused of using a secret strain of bacteria stolen from GSK laboratories by a disgruntled employee 14 years ago.
Novartis has agreed to pay a "single digit percentage" royalty on sales of its version of GSK's antibiotic Augmentin for the next four years.
The victory for GSK will soothe some of the pain from the loss of patent protection for Augmentin, whose sales have collapsed since rivals started selling cheap copycat versions last year.
Analysts, however, said the sums involved would not be material to either GSK or Novartis. GSK is still pursuing two other generic drug manufacturers - Teva of Israel and India's Ranbaxy - for using the strain, which it claims they ought to have known was stolen.
The UK giant is also still hoping to reverse the loss of its patent protection on Augmentin and the verdict in that separate legal battle is due from the US courts imminently.
GSK's Augmentin sales were down 42 per cent in the first three months of the year. The company's shares, which were down 21p to 1,186p yesterday, are some 25 per cent below their level when Augmentin's patents were overturned last year.
Jean-Pierre Garnier, chief executive of GSK, is under pressure to show he can replace revenues from off-patent drugs with new products from the clinic.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 4 Amy Schumer: 'I'm 160lbs and can catch a d**k any time I want'
- 5 Isis executes three gay men by dangling them from top of 100ft building and letting go
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
Amy Schumer: 'I'm 160lbs and can catch a d**k any time I want'
Isis executes three gay men by dangling them from top of 100ft building and letting go
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...