Pfizer Wins Patent Case, Staves Off Generic Version of Lipitor

A federal judge in Delaware ruled Friday for Pfizer Inc. and against Ranbaxy Laboratories Ltd. in a patent fight over rights to the blockbuster cholesterol-lowering drug Lipitor.

U.S. District Judge Joseph Farnan Jr. said Ranbaxy’s generic version of the cholesterol treatment infringed two Pfizer patents. He also found the New Delhi-based generic drug maker failed to prove Pfizer’s patents were invalid or unenforceable.

The ruling heads off the chance that Ranbaxy will be able to launch a cheaper version of Lipitor before Pfizer’s patents expire in 2009 and 2011.

Pfizer sued Ranbaxy after Ranbaxy applied to make and sell its own version of Lipitor. The 8-year-old drug is Pfizer’s pillar of strength as the company’s revenue growth and earnings continue to dwindle because of a raft of problems.

The hardships, which had dragged Pfizer’s share price to an eight-year low, include evaporating sales of its treatments for epilepsy, fungal infections and high blood pressure after patent expirations paved the way for cheaper copycats.

Sales of Pfizer’s Celebrex arthritis drug, meanwhile, have been cut almost in half because of safety concerns, and revenue from the arthritis drug Bextra vanished when it was withdrawn in April after being linked to a deadly skin condition.

But those setbacks would pale in comparison with the loss of Lipitor, the crown jewel in Pfizer’s acquisition of Warner-Lambert Co. five years ago.

“U.S. sales of Lipitor account for 15% of Pfizer’s [global] revenue and perhaps 25% to 30% of its profit, so there were enormous stakes here,” said Mehta Partners analyst Shaojing Tong.

Pfizer shares rose 11% to $25.10 in after-hours trading Friday from a close of $22.58.

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Associated Press and Reuters were used in compiling this report.