Schering-Plough, Sepracor Sign Deal to End Clarinex Exclusivity in 2012

(MoneyWatch)  Schering Plough and Sepracor have settled a patent dispute with Indian generics maker Dr. Reddy's over Clarinex. The settlement brings forward the end of patent exclusivity on Clarinex to 2012. Previously, the assumption had been that Schering's exclusivity with Clarinex would last until 2020.

The terms of the settlement were undisclosed, making it difficult to calculate the damage to Schering and Sepracor's revenues. (Sepracor holds the exclusive worldwide license rights to Clarinex -- who knew?) Schering makes about $800 million a year on the drug.

The Clarinex patent has been the subject of some controversy before. And Dr. Reddy's is not the only challenge to Schering's exclusivity on Clarinex. Another Indian generics maker, Orchid, brought suit against Schering earlier this year.

It will be interesting to see future financial statements of Schering and Sepracor. If this settlement is sensible -- i.e. if it doesn't give away the store -- then we ought to see some healthy extra licensing/litigation revenue appear in both companies coffers in the next few quarters.