In Brief: Bayer Cipro

Executive Summary

Bayer Cipro: Barr Labs settles ciprofloxacin patent litigation against Bayer on Jan. 16 for $24.6 mil. up front plus a supply agreement to begin in January 1998. Under the supply agreement, Bayer can make payments to Barr or sell Barr ciprofloxacin, presumably at a discounted rate; the monetary value of the supply agreement, which runs through December 2003, is estimated at $25 mil. annually. If Bayer chooses the product option, Barr will market generic ciprofloxicin in conjunction with Rugby, which provided Barr with financial support during the suit. Barr and Rugby also have the unconditional right to begin selling Cipro six months prior to the patent's expiration ("The Pink Sheet" Sept. 9, 1996, T&G-6)...