Wyeth's claim on Protonix unjustified: Sun Pharma

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Wyeth's claim on Protonix unjustified: Sun Pharma

“We strongly believe that we have reasons to disagree with the claim that they have made. Fundamentally, we also believe that the patent invalidated is something that we will continue to fight for, Uday Baldota, vice president - investor relations, Sun Pharma told CNBC-TV18.

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Wyeth Pharmaceuticals has filed a claim to seek USD 960 million in damages from Sun Pharmaceuticals  for alleged patent infringement in launching a generic version of Protonix in the United States. However, Sun Pharma disagrees with this claim and finds it unjustified.

"We strongly believe that we have reasons to disagree with the claim that they have made. Fundamentally, we also believe that the patent invalidated is something that we will continue to fight for , Uday Baldota, vice president - investor relations, Sun Pharma told CNBC-TV18.

Meanwhile, Sun Pharma reported a sales turnover of Rs 1,011.85 crore for the December quarter 2011, against Rs 760.57 crore reported in the same quarter a year ago. Net profit for December quarter 2011 stood at Rs 365.23 crore versus Rs 342.67 crore, posted in the period a year ago.

Below is the edited transcript of Baldota's interview with CNBC-TV18. Also watch the accompanying video.

Q: Can you talk about the Wyeth damage suit which has come in on Protonix. How strong is Sun Pharma's case?

A: This is a case that has been going on for the last 7-8 years and this is a claim that Wyeth has filed recently. It is just a claim. We strongly believe that we have reasons to disagree with the claim that they have made. Fundamentally, we also believe that the patent invalidated is something that we will continue to fight for. So it is just a claim, nothing more.

Q: How does it proceed legally from here?

A: The case will continue. It is in the District Court and the court will have to rule on all the aspects of the case including the damage. Once the case in decided in the District Court, there is an opportunity to appeal for either side.

Q: How long do you expect this entire litigation process to take and could you just break up the liability as it stands between Teva and Sun because that as well gets split, the liability damages between the two?

A: This liability USD 960 million that we have disclosed is basically the claim that they have made on Sun. The Teva number is something that Teva need to disclose.

Q: What is it that you are predicting for the Q4 because it seems like there may be some softness in sales over there?

A: Taro had indicated that in the October-December quarter, gains that they have registered is primarily on account of the price increases that they have taken in some of the products in the US market. These gains may not be sustainable. There might be an overall impact on sales and margins. This is something that we have also indicated to our investors.