Glaxo/Teva Ruling Could Spell Trouble for Generic Drugmakers

A Federal Circuit decision reinstating a $235 million verdict against Teva Pharmaceutical Industries Ltd. for infringing GlaxoSmithKline Plc‘s heart drug patent could lead to changes for the generic drug industry.

A trial court had thrown out the jury’s verdict that Teva’s sale of a generic version of Glaxo’s heart drug Coreg infringed. The U.S. Court of Appeals for the Federal Circuit, in a 2–1 ruling, reinstated both the infringement finding and the damages award based on Glaxo’s lost profits.

The $235 million penalty is three times the $74.5 million Teva made in sales of the generic drug. Such outcomes ...