DRL says no claims for monetary damages in USA patent case

Andrew Cummings
February 17, 2017

Helsinn is the owner of three patents, United States numbers 7,947,724; 8,729,094; and 9,066,980, covering its branded product, which is used to treat chemotherapy-induced nausea.

City-based drug giant Dr Reddy's Laboratories (DRL) on Thursday informed the bourses that it has received an unfavourable ruling in a patent infringement case related to Palonosetron Hydrochloride 0.25mg/5ml, Swiss player Helsinn Healthcare's nausea prevention drug Aloxi. The court found that Dr. Reddy's Laboratories" proposed Palonosetron Hydrochloride 0.25 mg / 5 ml product infringes certain claims of USA patent numbers 7,94,7724; 8,729,094; and 9,066,980 and that the asserted claims of the "094 and "980 patents were not invalid".

"We are disappointed in the decision and intend to pursue an appeal in due course", Dr Reddy's spokesperson said.

Helsinn Healthcare is a Switzerland-based pharma company. The settlement will allow it to market the generic version of Aloxi in the U.S. on September 30, 2018, or earlier, under certain circumstances.

A favourable ruling would have allowed Dr. Reddy's to replace the patented drug, which has an estimated size of $650 million in the USA market, say analysts. The court found the proposed formulation infringes certain patent claims, it said. The product was to be launched in financial year 2017-18, where analysts had pencilled in about $30 million of revenues.

Brokerage Nomura was expecting the product to offer annual revenues of $100 million in the initial period. Shares of the company opened at Rs 2920 and touched a high and low of Rs 2932 and Rs 2803.50, respectively, in trade so far. The shares closed 0.58% up, while the benchmark S&P BSE Sensex gained 0.52%.

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