Pfizer Wins Viagra Patent Case Against Teva

By Phil Milford – Aug 15, 2011 9:58 AM ET

Pfizer Inc. (PFE) won a patent- infringement case that prevents Teva Pharmaceutical Industries Ltd. (TEVA) from marketing a generic version of the impotence drug Viagra until 2019.

U.S. District Judge Rebecca Beach Smith in Norfolk, Virginia, ruled Aug. 12 against Petach Tikva, Israel-based Teva, which claimed the patent wasn’t valid and couldn’t be enforced.

“Teva has not shown by clear and convincing evidence that the patent is invalid,” Smith said in a 110-page opinion. In addition, “there is utterly no evidence” to support Teva’s claim that that Pfizer intentionally withheld documents from the U.S. Patent and Trademark Office, Smith wrote.

Viagra sales increased 5.5 percent in the first quarter to $479 million, Pfizer said in May. New York-based Pfizer, the world’s biggest drugmaker, posted net income of $8.26 billion last year on sales of $67.8 billion.

“Protecting the intellectual property rights of our innovative core is critical,” Amy Schulman, Pfizer’s general counsel, said in a statement. “Friday’s court decision acknowledges Teva’s clear violation of our patent rights.”

Teva shares fell 3 percent to 138.30 shekels in Tel Aviv. the company’s American depositary receipts, each representing one ordinary share, rose 11 cents to $39.81 in Nasdaq Stock Market trading at 9:45 a.m. New York time. Pfizer gained 42 cents, or 2.4 percent, to $18.28 in New York Stock Exchange composite trading.

‘Surprise’

The ruling was “a surprise,” Bloomberg Industries analyst Asthika Goonewardene said in an interview.

“The patent was a method-of-use patent, and usually these don’t hold up that well in court for small molecular drugs,” Goonewardene said. “The court’s decision to uphold this patent means other filers wanting to enter in 2012 are not likely to do so then.”

Denise Bradley, a Teva spokeswoman, declined to comment on the ruling.

The case is Pfizer v. Teva, 10-cv-128, U.S. District Court, Eastern District of Virginia (Norfolk).

To see the patent, click: 6,469,012.

To contact the reporter responsible for this story: Phil Milford in Wilmington, Delaware pmilford@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.