India's generic drug manufacturer, Dr Reddy's Laboratories, suffered a setback when a US' Court of Appeals ruled that it infringed on Pfizer Pharmaceutical company's patent for the blood pressure medicine Norvasc.
The decision by the court in Washington, DC, on Friday reverses an earlier ruling by a lower court in Newark, New Jersey.
Dr Reddy's Laboratories had used a different salt in its compound and argued that it does not infringe on the patent held by Pfizer. But the court ruled that the Pfizer patent on Norvasc - amlodipine besylate - is applicable to Reddy's amlodipine maleate.
Norvasc sales totaled $4.3 billon last year and the patent is due to expire in 2007.
In a statement, the CEO of Dr Reddy's Laboratories, G V Prasad, expressed disappointment over the decision but said despite the ruling, "we remain committed to investing the resources to create a sustainable US-based business of specialty products and new chemical entities as well as generic medicines."
Dr Reddy's core businesses include active pharmaceutical ingredients and branded formulations. These operations provide the critical skills necessary to develop and commercialise generic and specialty drugs and new chemical entities, as well as the financial flexibility to invest in high potential opportunities, he said.
Commenting on the decision, Pfizer said it was pleased with the ruling as it upheld its view.