Teva is a multinational generic manufacturer of pharmaceutical products with a presence in 60 countries, 40,000 employees and 1,800 medicines. Teva manufactures and distributes in the range of 85 billion tablets and capsules annually.
Eli Lilly is a multinational brand-name pharmaceutical manufacturer with products marketed in 120 countries, 34,000 employees and net sales in the range of $24.5 billion
Olanzapine is a drug developed by Eli Lilly and is primarily used to treat schizophrenia. Teva markets a generic equivalent called Teva-olanzapine. In preceding litigation, the Court found that Teva was entitled to damages for having been held off the market for a time (Section 8). This case was concerned with establishing the quantum of the damages.
Teva’s counsel retained us to quantify the damages Teva suffered pursuant to Section 8. Our detailed analysis was multi-faceted, and included losses arising from so-called pipefill – the sales made by a generic manufacturer when it first enters a market to fill the supply chain. These sales are not recoded in the IMS sales data (the industry standard for sales data in the industry).
The Court of Appeal agreed that this is a valid component of damages.