Ranbaxy Laboratories, an India based Drug Company and Pfizer have settled a court dispute over Lipitor, cholesterol lowering drug. The dispute started in 2003 regarding a generic version of the drug that was marketed by Ranbaxy.

Pfizer also sue Ranbaxy over patents expiring in 2016 regarding the active ingredient in Lipidor.

The Settlement allows Ranbaxy to market the generic version in 2011, keeping copies of the cholesterol pill of the U.S market for an extra 20 months thus protecting 12 billion in sales to Pfizer. The aforementioned settlement also allows Ranbaxy to sell the generic drug on various dates in seven other countries including Canada, Australia and Germany.

Pfizer and Ranbaxy also agreed that Ranbaxy will stop contesting the validity of Pfizer patents in several specified countries including the U.S.