The Medicines Co. Settles Angiomax Patent Dispute with Sun - Analyst Blog

The Medicines CompanyMDCO announced that it has entered into a settlement agreement with Sun Pharmaceutical Industries Ltd. in connection with the patent litigation regarding its lead drug, Angiomax.

Sun Pharma had challenged a couple of the Medicine Company's patents (U.S. Patent No. 7,582,727 and U.S. Patent No. 7,598,343) covering Angiomax. The patents, which are listed in the Orange Book, are slated to expire on Jul 27, 2028.

The patent infringement dispute dates back to Oct 2011, when The Medicines Company had received a Paragraph IV Certification Notice Letter from Sun Pharma notifying the former company that it has submitted an abbreviated new drug application to the FDA for the approval of a generic version of Angiomax. The Medicines Company had subsequently filed a patent infringement lawsuit against Sun Pharma.

Under the terms of the settlement agreement, Sun Pharma can bring to market a generic version of Angiomax in the U.S. on or before Jun 30, 2019, under certain limited circumstances.

Meanwhile, The Medicines Company remains entangled in patent infringement litigation for Angiomax with several companies including Hospira Inc. HSP . Last year, Hospira had received a favorable court ruling in the Angiomax patent infringement lawsuit. Although The Medicines Company has appealed the ruling, a decision in favor of Hospira could result in the entry of generic Angiomax as early as Jun 15, 2015.

Angiomax is The Medicines Company's lead product, with U.S. sales accounting for almost 83% of total revenues in 2014. Needless to say, the earlier-than-expected entry of generics will be a major setback for the company. We note that The Medicines Company did not provide any guidance for 2015; the company may provide guidance once a decision in the Hospira case is announced.

The Medicines Company carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Lannett Company, Inc. LCI and Cambrex Corp. CBM . Both the companies sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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