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US court affirms Biaxin patent ruling against Andrx
05 Jan 2007 18:45:11 GMT
Source: Reuters

(Adds detail, stock prices, comment from Abbott)

WASHINGTON, Jan 5 (Reuters) - A U.S. appeals court on Friday upheld a lower court ruling blocking Andrx Pharmaceuticals from selling a generic version of Abbott Laboratories Inc.'s <ABT.N> extended-release antibiotic Biaxin.

The U.S. Court of Appeals for the Federal Circuit affirmed the findings of a federal judge in Illinois, who concluded that Abbott had shown a likelihood that Biaxin patents had been infringed by Andrx, and that Andrx would probably not be able to prove the patents were invalid.

Abbott's patent for Biaxin XL extends until 2017. The drug, known generically as clarithromycin extended-release tablets, is used to treat upper and lower respiratory and skin infections.

Abbott spokesman Jonathon Hamilton issued a statement after the appeals court decision, saying the company was "pleased the appellate court upheld the preliminary injunction. It validates the strength of our intellectual property for Biaxin XL."

Andrx was recently acquired by Watson Pharmaceuticals Inc. <WPI.N>. A spokeswoman for Watson was not immediately available for comment.

In addition to the case against Andrx, Abbott filed infringement suits against Teva Pharmaceuticals Inc. and Ranbaxy Laboratories Ltd. <RANB.BO>, two other companies that sought to sell generic Biaxin.

Those cases were argued separately. In June last year the federal circuit appeals court overturned a preliminary injunction against Teva. However, both cases ultimately were settled.

In its ruling on Friday, the appeals court rejected an argument by Andrx that court findings in the Teva and Ranbaxy cases should be considered in its case as well.

Watson shares edged down 2.2 percent to $26.24 in afternoon trading on the New York Stock Exchange. Abbott shares fell 0.4 percent to $49.71.
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Indian army soldiers warm up around a fire during Raising Day celebrations of 15 Corps in Srinagar January 12, 2007. The Indian Army's 15 Corps, which is responsible for the defence of the Line of Control which divides India and Pakistan in Kashmir, celebrated its 91st raising day at its headquarters in Srinagar, Indian army authorities said. The Corps, fighting a 17-years-old separatist rebellion against New Delhi's rule, was created during the Second World War at Port Said, Egypt, on 12 January 1916, authorities added.