Dr Reddy's under pressure on losing appeal for Lunesta

MUMBAI: Shares of Dr Reddy's Laboratories were witnessing profit booking on reports that the company has lost a patent case in the US for the generic version of Lunesta.

At 10:10 a.m.; the stock was at Rs 2,429.10, down 1.09 per cent. It touched a high of Rs 2,455 and a low of Rs 2,419.00 in trade today.

Dainippon Sumitomo Pharma's Sunovion has won an appeals court ruling that Dr. Reddy's Laboratories' generic version of Lunesta would infringe a patent that expires next year.

According to reports, the US 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.

"The company has reached settlements with other companies over the sleep medicine, including one with Teva Pharmaceutical Industries that enable low-cost versions to enter the market before the patent expires. We maintain our estimates on the company and hence our neutral rating on the stock," said Sarabjit Kour Nangra, VP-Research, Pharma, Angel Broking.

Lunesta has generated US $136 million in sales during the first quarter in North America and China.