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Ranbaxy settles dispute with GSK
Indian pharma major Ranbaxy has settled the patent dispute with GSK on Valacyclovir, according to sources. The company will launch Valtrex generics in the later part of 2009 with a 180-day exclusivity.
Indian pharma major Ranbaxy has settled the patent dispute with GSKon Valacyclovir, according to sources. The company will launch Valtrex generics in the later part of 2009 with a 180-day exclusivity.
The sources added that the GSK agreement had upside of absence of authorised generics, or delayed entry. The settlement may see intermittent lump-sum payment to Ranbaxy. The agreement may also cover active pharmaceutical ingredient or dosage form supply agreement.
Ranbaxy may gain up to USD 400 million in exclusivity period, said sources. Ranbaxy is looking at many authorised generic opportunities in the US, they added.
Valacyclovir is branded Valtrex and is used to treat Herpes. The Valtrex brand has sales of over USD 1.3 billion in the US.
The settlement of the dispute has a strong upside for Ranbaxy, analysts said. Valtrex goes off patent in 2009 and the drug is growing fast at 15%. Ranbaxy may gain up to USD 400 million in the exclusivity period.
According to analysts, the out-of-court patent settlement works well for both the companies, as there was a lot of uncertainty on which side the decision will go.
Ranbaxy may have received money to settle the dispute, as there was no reason for it to settle the case unless short-term benefits were accrued, sources said. It could have been in the form of a lump sum payment or an offer discussion on API and dosage supplies from the Ranbaxy plant.
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The sources added that the GSK agreement had upside of absence of authorised generics, or delayed entry. The settlement may see intermittent lump-sum payment to Ranbaxy. The agreement may also cover active pharmaceutical ingredient or dosage form supply agreement. 
