Glaxo Has Right to Sell Generic Paxil CR Drug to Apotex, U.S. Judge Rules

GlaxoSmithKline Plc (GSK) has the right to sell an authorized copy of its Paxil CR antidepressant to Apotex Inc., a U.S. judge ruled, denying a bid by Mylan (MYL) Inc. to block such sales.

Mylan (MYL), the generic-drug company which signed a two-year licensing agreement in 2008 to market a copy of Paxil CR, claimed that Glaxo breached that contract by working with Toronto-based Apotex to sell a copy of the drug. U.S. District Judge Joel Pisano ruled that the agreement allowed Glaxo to sell generic Paxil CR to Apotex.

The license was “clear and unambiguous” and that let London-based Glaxo choose whomever it wanted to work with, Pisano ruled yesterday in federal court in Trenton, New Jersey.

“The language plainly states that GSK may commence marketing and selling of authorized generic Paxil CR after Mylan’s two-year period of exclusivity,” Pisano ruled. “GSK did exactly that. It marketed and sold authorized generic Paxil CR to Apotex.”

The case is Mylan Inc. v. SmithKline Beecham Corp., 10-cv- 4809, U.S. District Court, District of New Jersey (Trenton).

To contact the reporter on this story: David Voreacos in Newark, New Jersey at dvoreacos@bloomberg.net.

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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