Mylan Inc. (MYL - Free Report) recently announced that the US district court for the southern district of N.Y. has issued a favorable final judgment in a patent infringement case with Sunovion Pharmaceuticals.
The final verdict was in line with the decision issued by the Court of Appeals for the Federal Circuit. According to the order issued by the court, Mylan’s five patents related to its chronic obstructive pulmonary disease drug Perforomist stand as valid and enforceable and are infringed by Sunovion’s Brovana. Brovana is approved for controlling the symptoms of COPD, including chronic bronchitis and emphysema. Both Brovana and Perforomist are long-acting beta-2 agonists.
In 2012, Mylan settled its patent dispute with Sunovion Pharma pertaining to Brovana. Sunovion recognized that Brovana infringed two of Mylan’s patents, which are valid till Jun 22, 2021.
Following the currently issued favorable ruling, Mylan’s seven patents pertaining to Perforomist stand as valid and enforceable and are infringed by Sunovion’s Brovana.
We note that the Perforomist inhalation solution is marketed by the Mylan Specialty segment. The drug performed well in the first quarter of 2013. The most significant product in this segment is EpiPen auto-injector, which is used to treat severe allergic reactions.
The bulk of the revenues come from the company's generic division. The generics business has been consistently performing well. Mylan’s generic unit has seen quite a few launches over the past few months. One of the important recent launches includes the company's generic version of Pfizer Inc.’s (PFE - Free Report) erectile dysfunction drug Viagra. Dr. Reddy's Laboratories Ltd. (RDY - Free Report) too has been making multiple generic launches over the past few months.
Mylan carries a Zacks Rank #2 (Buy). Simcere Pharmaceutical Group appears to be equally attractive.