Aug 3 (Reuters) - A divided federal appeals court overturned
an order in favor of Momenta Pharmaceuticals Inc that had
blocked Watson Pharmaceuticals Inc from selling a generic
version of the blood-thinning drug Lovenox until a patent
infringement trial is held.
Friday's 2-1 decision by the U.S. Federal Circuit Court of
Appeals in Washington allows Watson and its partner Amphastar
Pharmaceuticals Inc to market for now their own generic version
of the drug, which is intended to prevent blood clots.
Shares of Momenta fell as much as 9.1 percent.
Momenta, which holds a patent related to the drug, and
Novartis AG's Sandoz unit won U.S. Food and Drug Administration
approval in July 2010 to sell a generic version of Lovenox,
resulting in about $1 billion of annual revenue.
In September 2011, the FDA gave approval for Amphastar and
Watson to sell their own generic version of the drug, whose
chemical name is enoxaparin. Two days later, Momenta and Sandoz
sued.
France's Sanofi SA sells the branded version of Lovenox.
Momenta and its lead lawyer did not immediately respond to
requests for comment On Friday.
U.S. District Judge Nathaniel Gorton in Boston in October
2011 temporarily blocked Amphastar and Watson from bringing
their version to market.
He cited the strength of Momenta's infringement claim and
the risk that the Cambridge, Massachusetts-based biotechnology
company could suffer "long-term irreparable harm" from a rival
version.
But Circuit Judge Kimberly Moore wrote for the appeals court
that "Momenta's admission that Amphastar's testing is carried
out to satisfy the FDA's requirements makes it unlikely that
Momenta will succeed on the merits of its infringement claim."
Federal Circuit Chief Judge Randall Rader dissented, saying
Amphastar "stepped in and took Momenta's patented invention
without permission," and suggested the majority's reasoning
would allow it "to trespass for years to come."
In afternoon trading, Momenta shares were down 54 cents, or
3.8 percent, at $13.58, after earlier falling to $12.83. Watson
shares rose 93 cents, or 1.2 percent, to $79.29.
The case is Momenta Pharmaceuticals Inc et al v. Amphastar
Pharmaceuticals Inc et al, U.S. Federal Circuit Court of
Appeals, Nos. 2012-1062, 2012-1103, 2012-1104.
(Reporting by Jonathan Stempel)
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