Orchid Chemicals settles case with Pfizer Inc

NEW DELHI: Hyderabad-based Orchid Chemicals has reached an out-of-court settlement with world’s largest drugmaker Pfizer Inc to sell a low-cost version of the American firm’s patented anti-depressant drug, Effexor XR, (extended release) in the US market this fiscal.

Wyeth, now owned by Pfizer, had in 2009 sued Orchid to prevent it from launching its generic version ahead of its patent expiry in 2017. US patent laws allow generic drugmakers to sell their drugs ahead of patent expiry if they successful challenge patent of the original brand.

An Orchid Chemicals spokesman confirmed the settlement. An e-mail sent to Pfizer spokespersons in India and the US remained unanswered . Venlafaxine, sold under the brand Effexor XR, rakes in about $2.5 billion annually in the US alone.

But it will not be a big revenue earner for Orchid as several other generic firms are also in the fray to launch the medicine.