Sun Pharmaceutical Industries fell nearly 4% to Rs535 after Wyeth sought damages worth $960 million related to their ongoing patent dispute over a generic version of Protonix drug.
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Wyeth Pharmaceuticals");'> Wyeth Pharmaceuticals Inc, a Pfizer group company, has claimed $960 million (Rs4,700 crore) in damages from Sun Pharma for allegedly infringing the patent on its anti-ulcer brand, Protonix.
The patent infringement dispute has been under litigation since 2005 and also involves the world’s largest drug generics company, Teva Pharma. Sun Pharma says it has sound reason to disagree with the claims of Wyeth and says the patent is invalid and unenforceable. The company will pursue all available legal remedies, including appeals, it said in a statement.
A US court had in July 2010 denied a motion by Sun Pharma and Teva Pharma to declare invalid the patent on the drug. This decision paved the way for the innovator to file for damages against the companies. However, based on court rulings over recent years, analysts reckon Teva and Sun Pharma have a good chance of defending their case in the US courts.
If the ruling goes against them, Sun Pharma would be liable to pay three times the sales achieved by the company, which would be in the region of Rs 2,100-2,400 crore. The release also indicated that Sun Pharma may be liable for some of the Teva damages (and vice versa). Analysts expect the news to have a negative impact on the stock.
The two generic makers had launched the drug at risk in the US markets in December 2007. Analysts estimate Sun would have grossed Rs 700-800 crore from the sale of the generic version of this blockbuster drug. Sun Pharma discontinued the sale from April 2010.
At 9.31 am, Sun Pharmaceutical was trading at Rs539.50, down by 2.85%, with a volume of 0.51 lakh shares traded on the BSE.
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Detailed story
Wyeth Pharmaceuticals");'> Wyeth Pharmaceuticals Inc, a Pfizer group company, has claimed $960 million (Rs4,700 crore) in damages from Sun Pharma for allegedly infringing the patent on its anti-ulcer brand, Protonix.
The patent infringement dispute has been under litigation since 2005 and also involves the world’s largest drug generics company, Teva Pharma. Sun Pharma says it has sound reason to disagree with the claims of Wyeth and says the patent is invalid and unenforceable. The company will pursue all available legal remedies, including appeals, it said in a statement.
A US court had in July 2010 denied a motion by Sun Pharma and Teva Pharma to declare invalid the patent on the drug. This decision paved the way for the innovator to file for damages against the companies. However, based on court rulings over recent years, analysts reckon Teva and Sun Pharma have a good chance of defending their case in the US courts.
If the ruling goes against them, Sun Pharma would be liable to pay three times the sales achieved by the company, which would be in the region of Rs 2,100-2,400 crore. The release also indicated that Sun Pharma may be liable for some of the Teva damages (and vice versa). Analysts expect the news to have a negative impact on the stock.
The two generic makers had launched the drug at risk in the US markets in December 2007. Analysts estimate Sun would have grossed Rs 700-800 crore from the sale of the generic version of this blockbuster drug. Sun Pharma discontinued the sale from April 2010.
At 9.31 am, Sun Pharmaceutical was trading at Rs539.50, down by 2.85%, with a volume of 0.51 lakh shares traded on the BSE.
....more info