[Ip-health] Collaboration de-risks patent challenge

[Michelle Childs]

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[ Picked text/plain from multipart/alternative ]


> From: "Prabhu Ram"
>
>
> Collaboration de-risks patent challenge
>
> The recent out-of-court settlements that Ranbaxy has struck with
> various US-based MNC drug companies, whose patents it had challenged,
> indicates a subtle shift in the company's US strategy. Others would do
> well to draw lessons that Ranbaxy's change of tack =97 from outright
> legal confrontation to cooperative flexibility =97 seems to offer. The
> globalisation game can be played much better through a conciliatory
> approach.
>
> The settlement with AstraZeneca allows Ranbaxy to sell generic version
> of Nexium, a $5.5-billion acidity drug, in the US from May 2014.
> Earlier, in January the company had settled its patent litigation with
> GlaxoSmithKline on migraine drug Imitrex, which it is expected to sell
> in the US December 2008 onwards.
>
> There are indications that Ranbaxy may similarly settle its patent
> battle with Pfizer on the multi-billion dollar drug Lipitor. Ranbaxy
> and Dr Reddy's have been at the forefront of challenging patents on
> drugs in the US through Para IV filing =97 the generic manufacturer
> claims that either his product does not infringe the patent and/or the
> patent itself is invalid.
>
> A successful patent challenge allows the challenger a 180-day
> exclusivity in which no other company can launch a generic version.
> This exclusivity yields good profits. Indian companies have had some
> notable successes (Dr Reddy's, along with others, successfully
> challenged the patent on Prozac) but there have been many failures as
> well.
>
> Besides, in many instances, patent holders have resorted to authorized
> generics =97 they have allowed another company to launch a generic of
> the patented drug under challenge =97 which has undermined the
> lucrativeness of patent challenges. The resultant uncertainty with
> these patent challenges and their outcomes has caused share prices to
> become volatile.
>
> A more flexible and collaborative approach de-risks the patent
> challenge strategy and increases the expected cash flows =97 Ranbaxy has
> nearly 20 Para-IV filings in the US on drugs that have over $25
> billion market in the US =97 which should also help improve valuations.
>
> It also opens up other possibilities. Ranbaxy, for instance, would
> formulate a large portion of AstraZeneca's US supply of Nexium from
> May 2010. Other Indian patent challengers, too, need to be flexible to
> exploit the US potential to the hilt.
>
>
> http://economictimes.indiatimes.com/Editorials/Collaboration_de-risks_pat=
ent_challenge/articleshow/2999903.cms
>