Teva Beats $200 Million Lawsuit Over Pharmaceutical Acquisition

Teva Pharmaceutical Industries Ltd.'s US unit prevailed in court Tuesday against litigation seeking $200 million in post-deal payments tied to an acquisition by Cephalon Inc., which the Israeli drug giant later bought.

A Delaware judge rejected claims that Cephalon and Teva breached their agreement with former Ception Therapeutics Inc. investors by failing to bring its esophageal inflammation therapy to market despite successfully commercializing the same drug to treat lung inflammation. Cephalon paid $250 million up front for Ception in a 2010 transaction that included potential milestone payments of up to $200 million for each medical indication. Teva, which acquired Cephalon ...