TORONTO Biovail Corp. said Tuesday it has settled legal action with Watson Pharmaceuticals over a generic version of Biovail’s Cardizem LA blood pressure drug.
Under the terms of the agreement, Biovail will receive a royalty based on sales of Watson’s generic formulation of Biovail’s once-daily version of Cardizem (diltiazem). Watson will not commence marketing and sales of its generic product until April 1, 2009, at which time royalty payments will begin.
Biovail has also granted Watson an exclusive license to its U.S. patents covering Cardizem LA for a generic version of the drug.
The settlement between Toronto-based Biovail and California-based Watson is subject to court approval, and will be submitted to the U.S. assistant attorney general in charge of the antitrust division of the Department of Justice and the Federal Trade Commission.