Barr settles Warfarin sodium case for $22.5 million

By Elaine Rigoli

Tampa, Fla., June 12 - Barr Pharmaceuticals, Inc. announced that its Barr Laboratories, Inc. subsidiary has agreed to settle litigation claims made by Invamed, Inc. and Apothecon, Inc., both of which have since been acquired by Sandoz, Inc., a subsidiary of Novartis AG, regarding the raw material source for Warfarin sodium.

Under the agreement, the company will provide a one-time payment of $22.5 million to the plaintiffs.

As a result of the settlement, Barr said it will record the $22.5 million payment, or about $0.13 earnings per share, in the quarter ending June 30.

A trial had been scheduled to begin June 12, but this agreement terminates the ongoing litigation between the parties.

"While Barr believes that the lawsuit filed against it by Invamed and Apothecon was without merit and that our agreement with our raw material supplier was lawful, we made what we believe is a prudent decision to settle the claims to avoid further defense costs and valuable management resources," chairman and chief executive officer Bruce L. Downey said in a news release.

Woodcliff Lake, N.J.-based Barr Pharmaceuticals is a holding company whose principal subsidiaries, Barr Laboratories Inc. and Duramed Pharmaceuticals Inc., develop generic and proprietary pharmaceuticals.

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