Sun Pharma shares fall on patent claims worth $960 million

Shares of Sun Pharma traded 3% lower at Rs 540 on the Nifty index at 0925 hours. Sun Pharma stocks were the biggest loser on the Nifty index.

Sun Pharma has outperformed the broader markets over the last few sessions on the back of strong earnings. Its subsidiary Taro Pharma delivered exceptional results in the fourth quarter.

Selling pressure was witnessed in the counter after US-based Wyeth Pharmaceuticals sought damages worth $960 million related to their ongoing patent dispute over a generic version of Protonix drug. Protonix, used to treat heartburn, is a registered trademark of Wyeth, which was acquired by Pfizer in 2009.

In a regulatory filing, Sun Pharma said that Wyeth has submitted to the District Court of New Jersey confidential expert reports claiming damages against Sun Pharma and Teva, arising out of their earlier "at-risk launches".

"Wyeth's experts have estimated the purported damages from Sun Pharma to be USD 960 million. Wyeth's experts have also claimed Teva may be liable for some of Sun Pharma's damages and vice versa," the filing said.

However, Sun Pharma said that it has sound reasons to disagree with the claims and in due course, it would also come out with its expert reports providing assessment on the purported damages.

"After this, patent misuse and appropriate level of damages will be determined," it added.

In 2010, the District Court had turned down Sun Pharma's request to "reverse the jury verdict that the patent is not invalid".

Wyeth and Nycomed, the company from which the Protonix was licensed, had initiated legal action against Sun Pharma and Teva over alleged patent violations in 2004.

(with PTI inputs)

Tags: Protonix, Sun Pharma, Wyeth Pharmaceuticals