Trimeris (Nasdaq: TRMS) will pay Novartis $2.4 million and royalties on the sale of the HIV drug Fuzeon as part of a patent settlement.
Trimeris, which sells Fuzeon in partnership with Roche, announced the settlement with Novartis before the stock markets opened Monday. Trimeris will pay another $133,000 to Novartis before Oct. 31.
Sales of Fuzeon , and Trimeris has reduced most of its operations.
Novartis also will receive royalties of 1.5 percent on sales of Fuzeon in the U.S. and Canada and 1 percent elsewhere. The rate increases to 3 percent for U.S. and Canada sales and 1.5 percent globally on sales above $50 million.
Trimeris and Roche said the agreement resolves the Novartis suit, which had been filed in the U.S. District Court for the Eastern District of North Carolina.
The royalty will be divided equally among Trimeris and Roche.
Trimeris’ payments to Novartis represent 50 percent of Trimeris’ royalties received from Novartis.
Roche handles manufacturing, marketing and sales for Fuzeon.
In another agreement, Trimeris said it had struck a deal with Roche that relieves the Durham-based company of some $18.7 million due for selling and marketing of Fuzeon.
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