 "Negative US verdict push Dr Reddy's shares down")
On Friday, shares of Dr Reddy's Labs (DRL) dipped about 2% following the verdict given by US court that DRL's generic drug would infringe the innovator's patent.
The United States Court of Appeals for the Federal Circuit has ruled that DRL's geeneric would infringe on the patent of Sunovion Pharmaceuticals blockbuster drug Lunesta.
On BSE, shares of Dr Reddy's went down to Rs 2,419 from opening rate of Rs 2,455 a share.
Ruling against a New Jersey Court which approved DRL generic, the federal Circuit Court said that the lower court has "erred" in granting summary judgement of non-infringement by DRL.
According to Dainippon Sumitomo Pharma, Lunesta, used to treat insomnia, generated $136 million revenues in North America and Chinese markets in the April-June quarter of the current fiscal.
Sunovin is a wholly-owned subsidiary of Dainippon Sumitomo Pharma Co. Ltd (DSP).
The Osaka-based Dainippon Sumitomo has already reached settlements with other companies over the sleep medicine, including one with Teva Pharmaceuticals.