Arnhem, the Netherlands, September 8, 2005 – Akzo Nobel’s human healthcare business, Organon, has entered into a non-binding letter of intent with Duramed Pharmaceuticals, Inc., a subsidiary of Barr Pharmaceuticals, Inc., to settle the pending patent litigation concerning a generic version of Organon’s Mircette® oral contraceptive.
Under the proposed transaction, Barr would pay Organon USD 142 million to settle the patent litigation and to acquire all rights relating to Mircette, including the U.S. marketing approval. Barr would also pay USD 13.75 million to Saviant Pharmaceuticals, Inc., owner of the patent covering Mircette. Organon is the exclusive licensee under the patent for Mircette.
The patent litigation is currently before the U.S. District Court for the District of New Jersey. The court has agreed to stay any further proceedings to allow all parties involved to negotiate definitive settlement agreements.
Barr and Organon filed the Letter of Intent with the Federal Trade Commission (FTC) this year, pursuant to the Hart-Scott-Rodino Antitrust Improvements Act. The closing of the deal is subject to FTC approval, which is currently at a second request stage.