AstraZeneca surges after US District Court upholds Crestor patents until 2016

AstraZeneca (LON:AZN, NYSE:AZN) surged more than 10% this morning, making it by far the largest gainer in the FTSE 100 after the company announced that a US District Court Judge in the District of Delaware, had upheld the company’s appeal to stop generic versions of its blockbuster drug Crestor reaching the market before 2016.

Nine generic drug manufacturers filled for “Abbreviated New Drug Applications” in 2007 through the FDA in United States, which brought about eight patent infringement lawsuits from AstraZeneca and Shionogi, the owner of the all important 314 patent.  Shares in Shionogi (TKO:4507) jumped 7 in Tokyo. The 314 patent covers the active ingredient in Crestor – Rosuvastatin calcium.  Since the initial suits were filed, the US District Court amalgamated the eight suits into one case which commenced in February this year.

"We are pleased with the court's decision upholding the validity and enforceability of the '314 substance patent," said David Brennan, Chief  Executive Officer, AstraZeneca. "The court's decision reaffirms the strength of the intellectual property protecting CRESTOR."

The district court judge also concluded Apotex USA was liable ‘as a submitter’ and is also bound by the decision.

Crestor, which is used to lower cholesterol in the bloodstream by blocking an enzyme in the liver, generated sales of US$4.5 billion for AstraZeneca in 2009.