It was a stunning number, purportedly the largest patent settlement in history. During trial, defendants Teva ($1.6 billion) and Sun ($550 million) agreed to pay plaintiffs Wyeth and Nycomed a combined $2.15 billion to settle litigation stemming from their “at-risk” launches of generic versions of Wyeth and Nycomed’s Protonix product.

At-risk launches have become a popular tactic by generic companies over the last 10 years. As a result, counsel for branded and generic companies are increasingly litigating highly complex damages issues. However, the law on patent damages as applied to the interactions between generic and branded products in the pharmaceutical marketplace remains largely undeveloped.