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Mylan Wins Permanent Block of Apotex Generic Paxil Sales

Generic drugmaker Mylan Inc. (MYL) won a U.S. federal judge’s order to permanently block business partner GlaxoSmithKline Plc from supplying Apotex Inc. with marketable copies of the antidepressant Paxil CR.

The case dates to 2007, when Glaxo filed a suit accusing Mylan of infringing a Paxil patent, U.S. District Judge Joel Pisano in Trenton, New Jersey, said yesterday in granting an injunction. The parties settled, with Mylan buying a license to sell a generic version of the drug, the judge wrote.

When Glaxo granted a second license to Apotex in 2010, Mylan sued and lost. The U.S. Court of Appeals in Philadelphia reinstated a breach-of-contract claim in July 2013 and sent it back for trial, Pisano wrote.

On March 25, a jury found for Canonsburg, Pennsylvania-based Mylan, and awarded it $106.7 million in damages, finding “Glaxo (GSK)’s agreement with Apotex breached the license agreement,” Pisano said. Mylan requested the injunction after the trial.

Mary Anne Rhyne, a spokeswoman for London-based Glaxo, didn’t immediately return a call seeking comment on the ruling.

The case is Mylan Inc. v. SmithKline Beecham Corp., 10-cv-04809, U.S. District Court, District of New Jersey (Trenton).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net Andrew Dunn, David Glovin

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