) recently announced that it has entered into a settlement
agreement with Sunovion Pharmaceuticals Inc., a subsidiary of
Japanese pharmaceutical company, Dainippon Sumitomo Pharma Co.,
The patent litigation was related to Sunovion's Brovana, which
is approved for controlling the symptoms of chronic obstructive
pulmonary disease (COPD), including chronic bronchitis and
Sunovion recognized that Brovana infringed two of Mylan's
patents, which are valid till June 22, 2021. The details of the
agreement were not disclosed.
Mylan and Sunovion have been involved in a legal tussle in the
past. Sunovion had filed an infringement lawsuit against Mylan
related to its Abbreviated New Drug Application (ANDA) for
Sunovion's Xopenex (levalbuterol hydrochloride inhalation
solution). In February 2012, the jury ruled against Mylan as it
found that it had intentionally infringed on Sunovion's patents.
The jury also asked Mylan to pay $18 million to Sunovion for lost
profits and royalties.
Meanwhile, Mylan continues to launch new generic drugs.
Recently, Mylan's UK and Italian subsidiaries launched a generic
) osteoporosis drug, Bonviva (ibandronic acid), 150 mg. Bonviva is
a coated tablet with a once-monthly recommended dosing.
As of May 23, 2012, Mylan had 173 ANDAs pending clearance by the
FDA, targeting $92 billion in sales annually. Mylan believes that
about 38 of these ANDAs are first-to-file opportunities,
representing approximately $25.5 billion in branded sales. The
revenue figures are, as per IMS Health, for the 12 months ending
Dec. 31, 2011.
We are encouraged by Mylan's geographic reach and product depth
along with a robust generic product pipeline. However, we are
concerned about the company's lacklustre performance in the EMEA
Additionally, with most large branded drugs due to lose patent
exclusivity within 2017-2018, we have little visibility on the
growth prospects for generic companies like Mylan beyond that
Thus, we prefer to remain on the sidelines and have a Neutral
recommendation on Mylan. The stock carries a Zacks #3 Rank (Hold
rating) in the short term.
MYLAN INC (MYL): Free Stock Analysis Report
(RHHBY): ETF Research Reports
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