Eli Lilly and Company (LLY - Free Report) announced that it has received a favorable ruling in a lawsuit related to the infringement of vitamin regimen patent for its cancer drug, Alimta (pemetrexed for injection) from the U.S. District Court for the Southern District of Indiana.
As per the court’s verdict, a wholly owned subsidiary of Teva Pharmaceutical Industries Limited (TEVA - Free Report) , Teva Parenteral Medicines, Inc.’s proposed generic version of Alimta would infringe the vitamin regimen patent. The vitamin regimen patent remains valid till May 2022.
While the compound patent covering Alimta is set to expire in early 2017, the vitamin regimen patents remain valid till May 2022 following the favorable ruling.
We note that earlier in Mar 2014, Eli Lilly received a favorable ruling from the U.S. District Court for the Southern District of Indiana regarding the vitamin dosage regimen patent for Alimta.
In Jun 2015, Eli Lilly also received a favorable ruling from the UK Court of Appeal for its patent infringement lawsuit against Allergan (AGN - Free Report) (previously known as Actavis) for Alimta. The Court ruled that the patent protecting the Alimta vitamin regimen runs until 2021 and would be indirectly infringed by Allergan (read more: Eli Lilly Wins Alimta Patent Lawsuit in the UK, Shares Up).
Alimta, which generated revenues of $1.2 billion for the first six months of 2015, is one of the top revenue grossers at Eli Lilly. Sooner-than-expected entry of the generic version of the drug would be a major setback for the company.
Eli Lilly carries a Zack Rank #2 (Buy). Gilead Sciences Inc. (GILD - Free Report) is another favorably ranked stock in the health care sector carrying a Zacks Rank #1 (Strong Buy).
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