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Sun Pharma In The News

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Sun Pharma shares rise as Eli Lilly loses patent case in US

 

Eli Lilly and Co has lost a patent case in the US, clearing the way for lower cost generic competition for its attention deficit disorder drug Strattera. The US District Court for of New Jersey ruled Lilly's method-of-use patent for Strattera, which is set to expire in 2017, was in'valid. Lilly said it plans to appeal the ruling.
 
This is the second victory that generic companies have had in patent litigation arena in the US in the last 15 days. Last July, Sun Pharma won a drug patent litigation in a US appeals court on Lilly's block'buster cancer drug Gemzar.
 
In the case of Strattera, there are at least six generic companies in the fray, including Mumbai-based Sun Pharma, Teva and Sandoz. Last year, Lilly reported Strattera sales of $609.4 million  or about 3 % of total revenues.
 
Sun Pharma shares were up 1.11% on the BSE to close at Rs 1,751.90 on Friday. Sun Pharma had filed an abbrevi'ated new drug application (ANDA) for the drug in the US in early 2008. Lilly has also owered its outlook for 2010 revenue growth and its shares fell nearly 3 % on the US bours'es. The drugmaker did not change its full-year 2010 earnings outlook, but said it now expects revenue growth in the low-to mid-singledigits,down from a previous estimate for mid-single digit growth.
 
"Assuming a launch of a generic version of Strattera in the United States, the loss of revenue will undoubtedly add to the challenges we will face during upcoming patent expirations on other key products," Lilly chief executive of'ficer John Lechleiter said in a statement.
 
A court decision is also ex'pected at any time in a patent litigation case involving the company's osteoporosis treatment E vista.