US appeals court revives Teva lawsuit against Lilly over Forteo generic delay

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A federal appeals court on Monday revived a lawsuit brought by Teva Pharmaceutical Industries against Eli Lilly over an agreement that allowed Teva to market a generic version of Lilly's osteoporosis drug Forteo. The two drugmakers brokered a settlement agreement in 2018 that allowed Teva to launch its generic teriparatide as early as 2019, but the US FDA eventually granted Forteo an additional three years of exclusivity in 2020. Teva began marketing its generic version in December 2023 and then sued Lilly in 2024, alleging that the extra exclusivity period delayed its generic marketing. The appellate court stated that the 2018 agreement does not clearly indicate whether or when the settlement agreement or relevant covenants expired, and those questions cannot be resolved in Lilly's favor based solely on the text of the agreement and the complaint.

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Appeals court revives lawsuit that could delay Lilly's Forteo exclusivity and generic competition timeline.