Ranbaxy hammered after setback in UK court

The high court judgment on Wednesday ruled the basic patent on Lipitor (sales of $11 billion a year), expiring in November 2011, was valid but a more specific patent, running out in July 2010, was not.

Ranbaxy said it will appeal against the UK court’s decision and expects a verdict on the appeal sometime in 2006. However, Ranbaxy is fighting a bigger battle against Pfizer in the US market. It expects a verdict on that patent by the end of 2005.

“If the Ranbaxy gets the verdict in its favour in the US, the company will get a big boost as it is struggling with pricing pressure in the US market amid growing competition,” said an analyst with an Indian brokerage.

According to market estimates, Ranbaxy could rake in up to $800 million from a cheap generic version of Lipitor, which would enjoy six months of exclusivity on the US market before other copycats are allowed in. Ranbaxy had already warned its 2005 profit would be hit by investment in the generic Lipitor launch.

Meanwhile, Ranbaxy said its US subsidiary, along with Agvar Chemicals Inc, has filed a joint complaint against Barr Laboratories Inc and Teva Pharmaceuticals USA Inc seeking damages and equitable relief for breach of contract in the US healthcare market.

Ranbaxy has filed the complaint also for fraud and tortious interference associated with the supply of active pharmaceutical ingredients (APIs) regarding the commercialisation of fexofenadine hydrochloride tablets, the company informed the exchanges on Thursday.