Pharmacia Corporation has reached a global settlement in principle with Allergan Inc to resolve an intellectual property dispute involving Allergan's ophthalmic product, Lumigan (bimatoprost ophthalmic solution, 0.03%). It is anticipated that final agreements regarding the settlement will be signed in the next few days. The agreement ends all outstanding patent disputes relating to Lumigan between the companies, and gives Allergan the rights to continue selling Lumigan throughout the world.

The U.S. legal action was initiated by Allergan in March 2001 prior to receiving U.S. Food and Drug Administration approval to market Lumigan in competition with Pharmacia's Xalatan. Xalatan (latanoprost ophthalmic solution), introduced in 1996, is the world's leading branded medicine for treatment of open-angle glaucoma and ocular hypertension.

In connection with the settlement, Allergan will make a $120 million payment to Pharmacia and will pay undisclosed royalties for a specified time on future sales of Lumigan.

The Allergan settlement represents the second legal action to be resolved by Pharmacia this month in relation to intellectual property in the ophthalmology field. Earlier this month, Pharmacia reached a global settlement with Alcon, Inc. on all intellectual property disputes involving Alcon's ophthalmic product, Travatan (travoprost ophthalmic solution, 0.004%). 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.