Bausch Health and Salix Pharmaceuticals settled outstanding intellectual property claims against their drug Xifaxan from generic drugmaker Actavis Laboratories.
Here's what you should know:
1. Actavis will receive a non-exclusive license effective Jan. 1, 2028, to create a generic version of Xifaxan through the settlement.
2. Bausch will not have to make any financial payments or other transfers of values under the agreement.
3. Bausch will retain exclusive rights to Xifaxan through 2029, but Actavis will be allowed to make a generic version of the drug a year before Bausch's patent expires.
4. Actavis can either market a royalty-free generic version of Xifaxan, contingent on FDA approval, or market an authorized generic version provided by Salix.
5. Bausch Health CEO Joseph Papa said, "This agreement reflects the strong intellectual property rights protecting Xifaxan, which is important for our company, and more importantly, the patients we serve. We have always believed in the durability of the Xifaxan franchise, and this agreement supports our continued investment in the research and development of new indications for Xifaxan to benefit patients."