Sunovion Wins Appeal Against Dr. Reddy’s Over Lunesta

Sept. 26 (Bloomberg) -- Dainippon Sumitomo Pharma Co.’s Sunovion won an appeals court ruling today that Dr. Reddy’s Laboratories Ltd.’s generic version of the sleep aid Lunesta would infringe a patent that expires next year.

The U.S. Court of Appeals for the Federal Circuit in Washington said the trial judge erred in ruling the Dr. Reddy’s version didn’t infringe the patent, which covers eszopiclone, the active ingredient in Lunesta. The opinion was posted on the court’s website.

Lunesta generated $136 million in sales during the first quarter in North America and China, Osaka-based Dainippon Sumitomo said in a July 31 statement. The company has reached settlements with other companies over the sleep medicine, including one with Teva Pharmaceutical Industries Ltd. that enable low-cost versions to enter the market before the patent expires.

The case is Sunovion Pharmaceuticals Inc. v. Teva Pharmaceuticals USA Inc., 13-1335, U.S. Court of Appeals for the Federal Circuit (Washington). The lower court case is Sunovion Pharmaceuticals Inc. v. Teva Pharmaceuticals USA Inc., 09cv1302, U.S. District Court for the District of New Jersey (Newark).

To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.net.

To contact the editor responsible for this story: Bernard Kohn at bkohn2@bloomberg.net.