UPDATE 1-Novo Nordisk says settles patent claim with Pfizer

(Adds background on case, details on Pfizer exiting Exubera)

LOS ANGELES, Dec 10 (Reuters) - Novo Nordisk (NOVOb.CO) said on Monday it has settled a lawsuit that claimed Pfizer Inc's (PFE.N) Exubera infringed Novo Nordisk patents covering inhaled insulin.

Details of the settlement were not immediately available.

Novo Nordisk filed the lawsuit in August 2006 in U.S. Federal Court in the Southern District of New York.

In December 2006, a federal judge in Manhattan denied a request by Novo Nordisk to halt Exubera sales, saying the need for new treatments trumped Novo's allegations of patent infringement.

Less than a year later, in October 2007, Pfizer announced it would return rights to Exubera to its partner Nektar Therapeutics (NKTR.O). Pfizer said its decision came after Exubera failed to gain acceptance among patients and physicians.

Nektar charged that Pfizer had failed to give the company advance notice of its decision to drop Exubera. Nektar also said it was disappointed by Pfizer's performance in marketing the drug, which logged sluggish sales.

Last month, Pfizer agreed to pay Nektar $135 million to settle a contract dispute related to Exubera.

(Reporting by Lisa Baertlein; Editing by Andre Grenon)

((lisa.baertlein@reuters.com +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net)) Keywords: NOVONORDISK PFIZER/PATENT

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