Schering-Plough Corporation has entered into separate licensing agreements with Geneva Pharmaceuticals Inc and Teva Pharmaceuticals USA Inc that will settle all patent litigation between Schering-Plough and the two companies regarding Schering-Plough's U.S. patents relating to ribavirin and its use in treating hepatitis C. No other products are involved.

Geneva and Teva each has an Abbreviated New Drug Application (ANDA) currently pending with the U.S. Food and Drug Administration (FDA) that seeks approval to market a generic ribavirin product. Schering-Plough markets ribavirin, USP capsules under the brand name Rebetol.

Under terms of the agreements, Schering-Plough will grant to Geneva and Teva, respectively, a non-exclusive, non-sublicensable license to its U.S. ribavirin patents. Geneva and Teva will each pay to Schering-Plough a royalty on their respective ribavirin sales. The agreements do not affect Geneva's or Teva's reported patent litigation with Ribapharm Inc.

Financial terms of the agreements are not being disclosed. The license agreements are subject to the courts' dismissal of the relevant lawsuits.

Schering-Plough in 2002 recorded U.S. Rebetol sales of $865 million as reported in its Jan. 23, 2003, earnings release. The company has reported in previous public documents that generic ribavirin competition in the United States could occur in 2003.