Patent Law

This from Brian Orelli, writing for The Motley Fool, on July 14, 2008:

Now Teva Pharmaceutical (Nasdaq: TEVA) knows what it feels like to be on the other side of a patent challenge. The generic-drug maker said last week that Momenta Pharmaceuticals (Nasdaq: MNTA) and Novartis (NYSE: NVS) are challenging the patents on its blockbuster multiple sclerosis drug Copaxone.

Launching a generic version of Copaxone could be a boon to the duo, who have also teamed up to make a generic version of Sanofi-Aventis' (NYSE: SNY) Lovenox, but it'll be a while before they can launch. Teva's lawsuit for patent infringement will trigger a 30-month stay before the Food and Drug Administration will approve the generic makers' marketing application. Of course, if Momenta and Novartis win the lawsuit first, that would also allow the FDA to approve the drug. But at the turtle's pace at which the courts move, I'd guess the 30 months will run out first.

Investors are usually in the dark about the chances of the patents getting overturned, and this case is no different. For competitive reasons, Momenta didn't want to give away its strategy for how it and Novartis plan to bypass Teva's seven patents, which will expire in May 2014. Novartis and Momenta may have company in the courtroom, though; Mylan (NYSE: MYL) recently announced that it had licensed the marketing rights in the U.S., among other places, for the generic version of Copaxone produced by India-based NATCO Pharma.

Read the full article here.