Drug-maker Cipla has said it would appeal the order of a United States District Court that has ruled against the sale of a product for pets, on the grounds that it infringed a patent held by Merial Ltd, a Sanofi company.
The US court had ordered the seizure of the drug made by Cipla and sold by Velcera, following a petition filed by Merial Ltd ruling that the sales of PetArmor Plus — an animal healthcare product — allegedly infringed a patent held by it. The Court gave its order giving Cipla 60 days to appeal.
A statement from Sanofi added : “The court ruled that both pet health companies Cipla Ltd and Velcera Inc were aware that their sales of PetArmor™ Plus products infringed Merial's patent and barred those two companies from further sales of these products in the US. The court ordered the seizure of any existing inventory in the US. Judge Land found Cipla in contempt of a March 6, 2008, order prohibiting Cipla from infringing Merial's patents covering FRONTLINE Plus® brand flea and tick control products.”
Cipla's Chief Financial Officer, Mr S. Radhakrishnan, told Business Line that this was Cipla's first veterinary product in the US and the company was not directly selling in the market. The product was launched by Velcera about three months ago, he said. The company is reported to have shipped about $10 million worth of the product.
There is no determination as yet by the Court on the financial implication of the patent infringement, Cipla told the Bombay Stock Exchange. The company has suspended the sale of the product in the US, it added. Cipla shares closed marginally down on the BSE at Rs 330 on Thursday.