Baxter, Teva will fight $500 million propofol judgment

Teva Pharmaceutical Industries Ltd., the world's biggest maker of generic drugs, said it will appeal a Las Vegas jury's award of $356 million in punitive damages against a subsidiary over its propofol drug, which is used to sedate surgery patients.

The jury also awarded $144 million in punitive damages against Baxter International Inc., which distributed propofol, said Kellie Hotz, a Baxter spokeswoman. Baxter plans to appeal, too.

"Teva believes that there are numerous grounds for appeal, and plans to contest the verdict vigorously," according to a statement issued by the company.

Hotz said the case involved "product misuse related to unsafe clinical practices, as opposed to an issue with a widely used and clearly labeled product."

"Jurors were not allowed to hear a number of compelling facts related to unsafe clinical practice at the root of the issue, Hotz said in an e-mail. "We expect this verdict will be successfully appealed."

Propofol is an intravenous agent used for sedation or anesthesia, according to Teva's website.

The Associated Press reported that the verdict was issued in the first of hundreds of civil lawsuits stemming from a hepatitis C outbreak two years ago. Nevada health officials have blamed the reuse of vials of propofol for infecting patients with the incurable liver disease, AP said.

The label for propofol clearly states that it is for single-patient use only and that aseptic procedures should be used at all times, Petah Tikva, Israel-based Teva said in its statement. The company said it acted responsibly.

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