Friday, August 04, 2006

More on Pfizer v. Ranbaxy over Lipitor: loss of $0.35/share?

Although Ranbaxy won on the 112 P 4 issue, Ranbaxy lost to Pfizer on the other issues in the Lipitor case. In 2004, IPBiz had a post from a article on the initial stages of the Ranbaxy Hatch-Waxman case with Pfizer over Lipitor:

Jay Deshmukh, vice president for intellectual property of New Delhi-based generic drugmaker Ranbaxy Laboratories Limited, plus William Zimmerman and Darrell Olson, partners at Irvine, Calif.-based Knobbe, Martens, Olson & Bear reviewed Pfizer's composition of matter patent on Lipitor and concluded that the main Lipitor patent does not cover the form of a key ingredient, atorvastatin, used in the drug. Ranbaxy alleges that Pfizer misrepresented that fact to the Patent and Trademark Office when it won an extension on the patent until 2010.

The particular patent wasn't identified in the article by Sue Reisinger, but one had the expiration date (2010). Now from the NY Times (by way of Bloomberg), one sees the final result of the "does not cover" argument at the CAFC:

The United States Court of Appeals for the Federal Circuit in
Washington upheld a lower court's finding that a planned generic copy by Ranbaxy
Laboratories would infringe a patent protecting Lipitor through March
The court invalidated a second patent on the drug that expires in June

The Lipitor cholesterol pill had sales of $12.2 billion last year.
Analysts had projected that the drug would not have competition from cheaper
generic versions until June 2011. Pfizer projected last month that sales of
Lipitor would reach $13 billion this year.

Of VALUE, the NYT had the text:

''If they lose 14 months, that's 14 months of lost revenue for
Lipitor,'' Anthony Butler, an analyst with Lehman Brothers in New York, said. ''On
that assumption, the value would be about 35 cents a share.''

No word if this includes the "Zocor" effect.


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