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Sanofi-aventis allows generic sales in return for royalties

French drug maker sanofi-aventis has agreed to allow the sale of generic versions of some of its allergy drugs in return for royalties

French drug maker sanofi-aventis has agreed to allow the sale of generic versions of some of its allergy drugs in return for royalties.

The agreement settles a three-year US patent infringement suit issued against generic manufacturers Barr Pharmaceuticals and Teva Pharmaceuticals. The agreement states that in exchange for royalties, Barr and Teva can sell cheaper versions of the allergy drugs Allegra and Nasacort in the US. Royalties are to be applied to sales retrospectively.

Under the terms of the agreement, Barr will have an option to purchase the finished pharmaceutical product from sanofi-aventis on a non-exclusive basis.

Sanofi-aventis is continuing with ongoing patent infringements suits against other generic manufacturers.

In 2007, US sales of Allegra and Nasacort totalled $276m and $301m, respectively.

19th November 2008

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