Teva lawsuit against Eli Lilly over Forteo revived by appeals court

Investing.com -- A federal appeals court on Monday allowed Teva Pharmaceuticals to continue its lawsuit against Eli Lilly over allegations that Lilly violated a settlement agreement related to a generic version of the osteoporosis drug Forteo.

The 7th U.S. Circuit Court of Appeals in Chicago reversed a lower court decision that had dismissed the case. The appeals court found that questions about when the settlement agreement expired cannot be resolved in Lilly's favor based solely on the agreement's text and the complaint.

Lilly initially sued Teva in 2016, claiming that Teva's proposed generic version of Forteo would infringe on Lilly's patents. The companies reached a settlement in 2018 that permitted Teva to launch its generic product as early as 2019, one week before Lilly's relevant patents were set to expire.

The Food and Drug Administration granted Lilly an additional three years of Forteo exclusivity in 2020. Teva launched its generic version in December 2023.

Teva filed suit against Lilly in 2024, claiming that Lilly's extended exclusivity period unlawfully delayed the generic launch in violation of their settlement agreement.

U.S. District Judge Matthew Brookman dismissed Teva's case last year, ruling that the settlement agreement was no longer in effect after Lilly's patents expired.

The three-judge appeals panel sent the case back to the Indiana federal court for further proceedings. Representatives for both companies did not immediately respond to requests for comment.

The case is Teva Pharmaceuticals USA Inc v. Eli Lilly & Co, 7th U.S. Circuit Court of Appeals, No. 25-2125.

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