Shire patent ruling a “huge boost” to company fortunes

Shire, the UK’s third largest pharmaceutical company, has announced it has won a patent infringement against Barr Laboratories – a case considered by some analysts to be pivotal in the company’s attempts to expand its US operations.

Barr had attempted to manufacture a generic version of Adderall XR, Shire’s treatment for attention deficit-hyperactivity disorder, but was forced to admit that its application to produce the drug would infringe upon Shire’s patents.

Shire will therefore be able to market Adderall XR without generic competition in the US until 2009 – a “huge boost” to the company’s fortunes, according to the Evening Standard.

Furthermore, the Barr subsidiary has agreed to purchase Adderall, the short-release formulation of Adderall XR, for $63 million (33 million pounds).

Matthew Emmens, chief executive officer of Shire, remarked: “We are very pleased to have reached this settlement on terms that are consistent with our beliefs that Shire’s patents are valid and enforceable and infringed by would-be generic competitors.”

In related news, Shire has entered into an agreement with Duramed, a Barr subsidiary, related to transvaginal ring products and Seasonique, an oral contraceptive. For an upfront $25 million and additional development payments, Shire will have exclusive marketing rights for these products in the UK, France, Germany, Italy and Spain on a royalty-free basis.

Mr Emmens said he was “excited” by the agreement.

Shire’s shares climbed by six per cent this morning on release of the news.

© Adfero Ltd