Pfizer Loses Viagra Patent Case to Lilly in Britain
By Braden Reddall Nov 8 9:28am ET
LONDON (Reuters) - A British court ruled Wednesday that U.S. drug company Pfizer's UK patent on the use of a key ingredient for blockbuster anti-impotence drug Viagra was invalid, clearing the way for rival products.
Lilly ICOS, a joint venture between Pfizer's U.S. rivals Eli Lilly and Co. and ICOS Corp., had brought the case because it is trying to produce a treatment to rival Viagra, one of the world's fastest-selling drugs.
The ruling only affects Pfizer's patent in Britain, but a Pfizer spokeswoman said there was a corresponding action in the works on a similar patent for the entire European Union.
High Court judge Hugh Laddie said he found the British patent on the use of Viagra component sildenafil citrate was based on knowledge already in the public domain before the patent was taken out in 1993.
Pfizer said in a statement it was reviewing the court decision and considering an appeal.
The ingredient is so important that Pfizer regards it as the patent ``for'' Viagra, Laddie told the court. Pfizer, however, pointed out its patent of the actual Viagra product, which runs until 2013, would not be affected.
Sildenafil is known as a ``PDE5 inhibitor'' because it helps PDE5, or the phosphodiesterase enzyme, break down the powerful relaxant guanosine monophosphate, which helps smooth muscle relaxation and enhances penile erection.
Pfizer said the ruling would allow other pharmaceutical companies to develop products using PDE5 inhibitors.
Shares in Pfizer, which became the largest drug company in the world through this year's purchase of Warner Lambert, closed at $44-13/16 in New York Tuesday. Eli Lilly stock had ended at $87-1/4 and Nasdaq-listed ICOS at $52-9/16.
Several groups have been trying to produce a rival for Viagra to match Pfizer's success, including German drug maker Bayer AG with its Vardenafil treatment, due in 2002.
JUDGE SAYS PATENT BASED ON PREVIOUS WORK
``I have come to the view this was not an unexpected discovery, on the contrary it is just what papers written on the subject beforehand would have led those engaged in the field to expect,'' Laddie told the court in London.
``Lilly ICOS object as, in the course of producing its own anti-impotence drug, it fears the patent will stand in its way. It claims it is invalid,'' he added.
Laddie had taken the rare step of keeping his decision secret from the parties and their lawyers until he gave the verdict Wednesday morning, due to commercial sensitivity.
The patent -- European Patent (UK) 702,555 -- sought to protect Pfizer for medical use of a number of chemicals, including sildenafil citrate, in the treatment of impotence.
``It (sildenafil citrate) is the active ingredient in the anti-impotence drug known as Viagra,'' the judge said. ``Indeed it is part of Pfizer's case that this is the patent for Viagra. It argues that the commercial success of Viagra is testimony to its inventiveness.''
Any question of an appeal of the decision, and the legal costs, has been adjourned to give lawyers a chance to consider the full implications of the complex 58-page judgement. (additional reporting by Roger Pearson, Arindam Nag) |
