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Wockhardt’s U.K. Unit To Pay £23 Million To Settle Dispute With Teva

The dispute stemmed from the price charged by Wockhardt’s U.K. unit for a drug.

Wockhardt Ltd.’s Azithromycin Tbalets IP Aziwok-250 tablets, left and Zedex-SF dry cough syrup bottle are arranged for a photograph (Photographer: Dhiraj Singh/Bloomberg)
Wockhardt Ltd.’s Azithromycin Tbalets IP Aziwok-250 tablets, left and Zedex-SF dry cough syrup bottle are arranged for a photograph (Photographer: Dhiraj Singh/Bloomberg)

Two subsidiaries of Wockhardt Ltd. have settled an ongoing commercial lawsuit in the London High Court with Teva Pharmaceuticals USA Inc. and its affiliate Cephalon Inc regarding a supply contract.

The dispute was around the price charged by CP Pharmaceuticals Ltd., a subsidiary of Wockhardt's U.K. unit, from Cephalon for a drug named Trisenox.

Under the terms of settlement, CP Pharmaceuticals has waived its claim for outstanding trade receivables worth £20 million, and agreed to pay £23 million to Teva and Cephalon, according to a stock exchange filing by Wockhardt.

The litigation, which started in September 2015, is now closed and all claims are dismissed, the filing added.

Shares of Wockhardt Ltd. closed 3.4 percent lower ahead of the announcement, compared to the benchmark BSE Sensex which remained largely flat.