MONTVALE, N.J., Oct. 16 /PRNewswire-FirstCall/ -- Barr Pharmaceuticals,
Inc. (NYSE: BRL) today announced that the U.S. Court of Appeals for the
Federal Circuit has upheld the 2005 decision of the U.S. District Court for
the Eastern District of New York, which rejected a challenge to the
lawfulness of a 1997 patent litigation settlement between its wholly owned
subsidiary, Barr Laboratories, Inc., and Bayer Corporation related to the
antibiotic Cipro(R).
In announcing its decision, the Court of Appeals affirmed "the grant of
summary judgment by the District Court for the Eastern District of New York
that the Agreements were not in violation of section 1 of the Sherman Act
because any anti-competitive effects caused by the Agreements were within
the exclusionary zone of the patent. We further affirm the court's
dismissal of the state antitrust claims."
"Today's decision clearly upholds Barr's assertion that our
ciprofloxacin settlement with Bayer was a valid settlement to a patent suit
and cannot be used as the basis of an antitrust claim," said Bruce L.
Downey, Barr's Chairman and Chief Executive Officer. "The Appeals Court
specifically noted that 'settlement of patent claims by agreement between
the parties--including exchange of consideration--rather than by litigation
is not precluded by the Sherman Act'."
"This ruling provides additional legal precedent that will allow
companies to settle patent challenge cases under terms that are both
pro-competitive and pro-consumer," Downey added. "Barr continues to defend
itself vigorously in a parallel appeal of the district court's decision by
direct purchasers that remains pending in the United States Court of
Appeals for the Second Circuit, as well as similar cases in several state
courts."
In 2000, approximately 38 class action complaints were filed by direct
and indirect purchasers of ciprofloxacin in state and federal courts
against Bayer, Barr, and Barr's litigation partners in the 1997 settlement.
All of the federal complaints were consolidated in the U.S. District Court
for the Eastern District of New York. In 2005, the U.S. District Court for
the Eastern District of New York granted summary judgment in the Company's
favor.
About Barr Pharmaceuticals, Inc.
Barr Pharmaceuticals, Inc. is a global specialty pharmaceutical company
that operates in more than 30 countries worldwide and is engaged in the
development, manufacture and marketing of generic and proprietary
pharmaceuticals, biopharmaceuticals and active pharmaceutical ingredients.
A holding company, Barr operates through its principal subsidiaries: Barr
Laboratories, Inc., Duramed Pharmaceuticals, Inc. and PLIVA d.d. and its
subsidiaries. The Barr Group of companies markets more than 120 generic and
27 proprietary products in the U.S. and approximately 1,025 products
globally outside of the U.S. For more information, visit http://www.barrlabs.com.
Forward-Looking Statements
This communication contains "forward-looking statements" which
represent the current expectations and beliefs of management of Barr
Pharmaceuticals, Inc. (the "Company") concerning the proposed merger of the
Company (the "merger") with Boron Acquisition Corp., a wholly-owned
subsidiary of Teva Pharmaceutical Industries Ltd. (the "Teva") and other
future events and their potential effects on the Company. The statements,
analyses, and other information contained herein relating to the proposed
merger, as well as other statements including words such as "anticipate,"
"believe," "plan," "estimate," "expect," "intend," "will," "should," "may,"
and other similar expressions, are "forward-looking statements" under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are not guarantees of future results and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those anticipated. Those factors include, without
limitation: the difficulty in predicting the timing and outcome of legal
proceedings, including patent-related matters such as patent challenge
settlements and patent infringement cases; the difficulty of predicting the
timing of FDA approvals; court and FDA decisions on exclusivity periods;
the ability of competitors to extend exclusivity periods for their
products; market and customer acceptance and demand for our pharmaceutical
products; our dependence on revenues from significant customers;
reimbursement policies of third party payors; our dependence on revenues
from significant products; the use of estimates in the preparation of our
financial statements; the impact of competitive products and pricing on
products, including the launch of authorized generics; the ability to
launch new products in the timeframes we expect; the availability of raw
materials; the availability of any product we purchase and sell as a
distributor; the regulatory environment in the markets where we operate;
our exposure to product liability and other lawsuits and contingencies; the
increasing cost of insurance and the availability of product liability
insurance coverage; our timely and successful completion of strategic
initiatives, including integrating companies (such as PLIVA d.d.) and
products we acquire; fluctuations in operating results, including the
effects on such results from spending for research and development, sales
and marketing activities and patent challenge activities; the inherent
uncertainty associated with financial projections; our expansion into
international markets through our PLIVA acquisition, and the resulting
currency, governmental, regulatory and other risks involved with
international operations; our ability to service our significantly
increased debt obligations as a result of the PLIVA acquisition; changes in
generally accepted accounting principles; the reactions of the Company's
customers and suppliers to the merger; and diversion of management time on
merger-related issues. These and other applicable risks, cautionary
statements and factors that could cause actual results to differ from the
Company's forward-looking statements are included in the Company's filings
with the U.S. Securities and Exchange Commission ("SEC"), specifically as
described in the Company's annual report on Form 10-K for the fiscal year
ended December 31, 2007. The Company undertakes no obligation to update or
revise any forward-looking statements to reflect subsequent events or
circumstances.
Important Legal Information
In connection with the proposed merger, Teva has filed a registration
statement on Form F-4 containing a proxy statement/prospectus for
shareholders of the Company with the SEC, and the Company and Teva may be
filing other documents regarding the proposed transaction with the SEC as
well. Before making any voting or investment decision, investors are urged
to read the proxy statement/prospectus regarding the proposed transaction,
as well as the other documents referred to in the proxy
statement/prospectus carefully in their entirety when they become available
because they will contain important information about the proposed
transaction. The definitive proxy statement/prospectus has been mailed to
the Company's shareholders. Shareholders may obtain a free copy of the
proxy statement/prospectus, as well as other filings containing information
about Teva and the Company, without charge, at the SEC's Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus and the
filings with the SEC that are incorporated by reference in the proxy
statement/prospectus can also be obtained, without charge, by directing a
request by mail or telephone to Barr Pharmaceuticals, Inc., 225 Summit
Avenue, Montvale, NJ, 07645 - Attention: Investor Relations.
The Company and its directors and officers may be deemed to be
participants in the solicitation of proxies from the Company's stockholders
with respect to the proposed merger. Information about the Company's
directors and executive officers and their ownership of the Company's
common stock is set forth in the Company's annual report on Form 10-K for
the fiscal year ended December 31, 2007 and the Company's proxy statement
for the Company's 2008 Annual Meeting of Stockholders. Stockholders may
obtain additional information regarding the interests of the Company and
its directors and executive officers in the merger, which may be different
than those of the Company's stockholders generally, by reading the proxy
statement and other relevant documents regarding the proposed merger filed
with the SEC.
SOURCE Barr Pharmaceuticals, Inc.
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Related links:
http://www.barrlabs.com
http://www.prnewswire.com/comp/089750.html
CONTACT:
Carol A. Cox of Barr Pharmaceuticals, Inc.,
+1-201-930-3720, Carol.Cox@barrlabs.com
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