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The maker of MidNite Sleep Remedy has recently settled a patent infringement suit with Contract Pharmecal, the manufacturer of CVS's natural sleep remedy. The settlement, in which Contract Pharmacal has agreed to stop making a disputed product for CVS, should have no impact on Woonsocket, R.I.-based CVS’s private label business, according to Mike DeAngelis, director of public relations at CVS.
The settlement between Concepts in Health, Inc., the maker of MidNite Sleep Aid, and CPC came after Concepts in Health filed a suit stating that Contract Pharmecal had used a Concepts-patented formula for CVS's private label sleep aid.
Under the terms of the settlement, Contract Pharmecal will immediately discontinue manufacturing and selling CVS natural sleep aid or any related products. Contract Pharmecal also agreed to not challenge the validity and enforceability of the MidNite Sleep Aid patent.
“It is a challenge for retailers putting together private brand prescriptions,” says Jim Wisner, president of Wisner Marketing Group. “But I imagine that CVS will recover by changing the formula.” The other option, he says, is to change private label manufacturers.
CVS would not state whether the patent infringement settlement will affect its business relationship with Contract Pharmacal. Contract Pharmacal also refused to comment on the matter.