Alcon, Inc., a leading eye care company, reported that it has reached a global settlement with Pharmacia Corporation on all intellectual property disputes involving Alcon's newest anti-glaucoma product, Travatan ophthalmic solution. Joining in the settlement was Columbia University, which licenses some of the involved patents to Pharmacia. Alcon's Travatan competes with Pharmacia's glaucoma medication, Xalatan. Both are prostaglandin-based products and are used to treat open angle glaucoma and ocular hypertension.
The agreement ends all outstanding patent and trademark disputes relating to Travatan between the companies worldwide, and gives Alcon the unrestricted right to continue selling Travatan throughout the world. In return, Alcon will pay Pharmacia royalties for a specified time based on Alcon's past and future sales of Travatan.
"Given the extent of the litigation and the prospect that it could continue for years to come, both parties saw the value in a business resolution of our differences. We are extremely pleased to have resolved all of our litigation issues with Pharmacia, and we look forward to continuing to expand our glaucoma franchise through increased sales of Travatan," said Tim Sear, Chairman of Alcon, Inc. "Because we had anticipated continuing litigation expenses or settlement costs, this resolution will not have a material impact on our margins and financial results for 2002, nor on our guidance for 2003."
Travatan is Alcon's newest drug for the treatment of glaucoma. Dosed once daily and requiring no refrigeration, this drug provides eye care professionals with a convenient and effective choice for treating their glaucoma patients. In addition, Travatan is the only glaucoma medication to have received U.S. Food and Drug Administration (FDA) labeling approval for its increased efficacy in African-American patients. This group of patients suffers more frequently and severely from glaucoma and represents an estimated 25% of glaucoma patients in the United States. Since gaining European Union approval in December 2001, Alcon has launched Travatan in 53 countries around the world.