Germany's Bayer agreed to supply a generic version of its Yasmin oral contraceptive for Barr Pharmaceuticals Inc to market in the United States in return for a fixed portion of sales.

Bayer plans to grant Barr a licence to market a generic version of its Yaz product. Both agreements would begin by July 1.  Barr has received U.S. Food and Drug Administration approval to sell its generic version of Yasmin after it challenged Bayer's patent. Bayer said it would continue to pursue an appeal of a New Jersey court's March decision invalidating Bayer's U.S. patent for Yasmin and said it would receive a larger share of Barr's revenues from the product if successful.

Bayer's global women's healthcare business will continue to post high single-digit to low double-digit percentage annual growth rates in the coming years thanks to products already on the market and new, promising developmental products.

Barr said that the deal would enable it to launch its authorized generic versions of Bayer's Yasmin and Yaz oral contraceptives years before the patents protecting them expired. Bayer added that should it lose patent lawsuits in the United States against other companies concerning Yaz, it would then start supplying Yaz to Barr too for it to market a generic Yaz there in return for a fixed percentage of the revenues.