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Ranbaxy and AstraZeneca Reach Agreement in Esomeprazole Patent Litigation
Date:4/15/2008

Manufacturing Agreements

AstraZeneca and Ranbaxy have separately entered into an agreement under which Ranbaxy will formulate a significant portion of AstraZeneca's U.S. supply of Nexium from May 2010, including provisions for the manufacture of Esomeprazole magnesium, the Active Pharmaceutical Ingredient (API) from May 2009.

Distribution Agreements

AstraZeneca and Ranbaxy have also entered into two separate agreements designating Ranbaxy as the U.S. distributor for the authorized generic versions of Felodipine Capsules and Omeprazole 40mg Tablets. Ranbaxy will be compensated for its distribution services on standard commercial terms.

In regards to the Distribution Agreements, Mr. Singh added, "It is anticipated that these products will fulfill the needs of the U.S. healthcare system in providing a generic formulation as an option, in addition to the brand. This will support the requirement of patients prescribed these medications, and supports our long-term efforts to increase our product portfolio of generic molecules to meet the needs of Americans."

Esomeprazole magnesium belongs to a class of medicines known as proton-pump inhibitors (PPIs). It works by binding to, and inhibiting, the acid pumps of a particular type of cell, which is found in the stomach. In doing so, it lowers the level of acidity in the stomach and helps to heal erosions in the esophagus or ulcers in the duodenum.

Esomeprazole magnesium is an effective treatment for patients with gastroesophageal reflux disease (GERD), but is particularly appropriate for those suffering from persistent, recurrent GERD, which can cause disruptive, long-term symptoms. Esomeprazole magnesium has been demonstrated to provide enduring relief from the impact of GERD amongst patients.

Felodipine is a calcium antagonist for the treatment of hypertension and angina.

Omeprazole was the first PPI and is used for the short-term treatment of acid-related disea
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SOURCE Ranbaxy Pharmaceuticals Inc.
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