Glaxo ready for fresh court battle

GLAXO yesterday limbered up for another battle to protect its rights to Zantac, its best-selling ulcer drug, when it started patent infringement proceedings against Novopharm, the generic manufacturer, in the US, writes Heather Connon.

Glaxo had been expecting attacks on its Form 1 patent for Zantac, which expires in the US in December 1995. It has always said that it is impossible to make Form 1 without also making Form 2, which is the basis used for the drug. The Form 2 patent does not expire until 2002.

Because rival manufacturers would not have to recoup the research costs of developing the drug, they would be able to undercut the price charged by Glaxo substantially.

Yesterday afternoon Novopharm hit back, calling Glaxo's legal action frivolous, and announcing that it intends to file a countersuit. 'Glaxo are really groping around with this lawsuit,' Leslie Dan, Novopharm chairman said. 'We are very optimistic that we shall prevail.' Mr Dan added that if court proceedings delay Novopharm's introduction of its rival to Zantac when Form 1 comes off patent at the end of 1995, Novopharm will sue Glaxo for delayed sales and seek punitive damages.

Novopharm is also challenging Glaxo's patent on Form 2 and is appealing against a court judgment last September upholding the patent. Glaxo also faces a challenge from Genpharm, another manufacturer of generic drugs.

Glaxo's shares fell 14p to 574p.