Eli Lilly: Zyprexa patent rulings deeply flawed

Eli Lilly has issued a statement in response to recent rulings by the German Patent Court and Canadian Federal Court regarding the patents for Zyprexa (olanzapine), which could result in the entry of generic forms of the drug in the pharmaceutical market in both these countries.

The company has attacked the decisions by these courts, stating that they are inconsistent with both the evidence heard at the trial and the legal principles underpinning the issue, with the firm planning to appeal both verdicts.

Lilly notes that, if generic medications were allowed on to the market and the decision later overturned on appeal, the firm would be entitled to the payment of damages as a result of any lost revenue.

Robert A Armitage, senior vice-president and general counsel at Lilly, said: “These decisions, if not overturned, undermine intellectual property protection in Canada and Germany and erode the incentives of pharmaceutical and biotech companies to make the high-risk investments necessary to discover and develop breakthrough medicines.”

He added that the company must make a stand to protect the interest of all innovators in the pharmaceutical industry and would seek to guard its intellectual property rights regarding olanzapine in both countries by protecting its patent until expiry in 2011.

The company notes that the decision of these two courts will not impact upon its financial status, with its earnings per share guidance for the full financial year unchanged.

In December 2006, Lilly announced that its US patent on Zyprexa had been upheld by the US District Court following proceedings brought against Zenith Goldline Pharmaceuticals.