Teva pays $7.5 million to settle IVAX lawsuit with Depomed

MENLO PARK, Calif. Depomed will receive a one-time payment of $7.5 million from Teva Pharmaceuticals generic unit IVAX in relation to a settlement of a patent lawsuit, according to published reports.

Depomed had sued IVAX in January 2006 claiming patent infringement by IVAX’s Glucophage XR, a diabetes medication.

Under the terms of the settlement, Depomed will also get up to $2.5 million in royalties, for granting Teva a non-exclusive license allowing it to continue marketing the generic version of Glucophage XR.