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Zyprexa Court Prepares For Ruling In Patent Case

This article was originally published in The Pink Sheet Daily

Executive Summary

Indianapolis court plans special procedures for announcing its bench verdict on infringement and invalidity claims involving Zyprexa. Lilly and ANDA filers Ivax, Dr. Reddy’s and Teva are admonished “not to speculate about the timing of the opinion.”

The Indianapolis court overseeing the Zyprexa patent case is making special preparations for releasing its verdict on infringement and invalidity claims involving the atypical antipsychotic.

Federal Magistrate Judge Sue Shields convened an unusual status conference Nov. 30 to inform parties in the case about procedures for announcing the court's decision.

"The court will issue a press release before the opinion is to be released stating when the opinion will be issued," Shields said in an order issued after the status conference.

Patent rulings involving blockbuster products are frequently released after the financial markets close.

The special procedures surrounding the Zyprexa decision could reflect the court's sensitivity to the ruling's potential impact on Indianapolis-based Lilly.

The bench trial in Lilly's infringement lawsuit against Dr. Reddy's, Ivax and Teva concluded in February before Judge Richard Young.

Dr. Reddy's and Ivax each claim first-to-file status for certain dosage forms of olanzapine.

Teva agreed not to actively participate in the litigation but will be bound by the court's decision.

During its quarterly earnings call Nov. 1, Ivax said it expected a decision in the Zyprexa case by year-end.

The court appears intent on curbing speculation about the timing of its decision. At the status conference, "the parties and the public were admonished by the court not to speculate about the timing of the opinion," Shields' order said.

Ironically, the convening of the status conference triggered speculation that a decision was imminent, as well as a published report that Lilly and Ivax were in settlement - or even merger - negotiations.

- Sue Sutter

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