Delhi HC restricts Glenmark from manufacturing, selling anti-diabetes drug; scrip falls over 2%

The shares of pharmaceutical major, Glenmark Pharmaceuticals shred over 2% on the back of a Delhi High Court judgement, which restrained the company from manufacturing and selling its anti-diabetes drugs Zita and Zita-Met, saying it has infringed the patent of American company, Merck Sharp and Dohme.

At 1208 hours, the shares of the company were trading at Rs 1,040, down 2% from its previous close of Rs 1,057.50. Intraday, the company's shares had hit a high of Rs 1,070 and an intraday low of Rs 1,034.40.

"Injunction allowed," Justice A K Pathak said, and added that Merck Sharp and Dohme will be entitled to the actual cost of the proceedings.

"In view of the finding returned on the above referred issues, the defendant is restrained by decree of permanent injunction from making using, selling, distributing, advertising, exporting, offering for sale or dealing in Sitagliptin phosphate monohydrate or any other salt of Sitagliptin in any form, alone, or in combination with any other drug, thereby infringing patent of plaintiff (MSD)," the court said.

Earlier, in an interim order, a division bench of the High Court had restrained Glenmark from making or selling its drug, used for treatment of Type-2 diabetes.

The bench had, however, on Glenmark's oral plea to allow it to sell its goods already in the market, clarified that it "may sell such of the products which are already in the market i.e in possession of its distributors and retailers".

However, while granting the injunction on Wednesday, the high court did not say anything about sale of existing stock.

The US company, in its plea, had sought an injunction against Glenmark, alleging that the Indian pharma company had violated its Intellectual Property Rights (IPR) over anti-diabetes medicines, Januvia and Janumet, by coming out with its own drugs containing the same salts.

The US firm had said it had invented 'Sitagliptin' salt used in its anti-diabetes drugs and has patent over molecule.

Glenmark, on the other hand, had contended that it has used 'Sitagliptin Phosphate' in its anti-diabetes drugs, Zita and Zita-Met, and US firm has no patent right over this salt. 

Glenmark had said that Sitagliptin Phosphate has been a distinct product from Sitagliptin and due to this, MSD had obtained separate patent for Sitagliptin Phosphate in the US.

MSD first applied for a separate patent for Sitagliptin Phosphate in India and later abandoned it, Glenmark had said.

On its part, the US drug firm had said its anti-diabetes drug Januvia is not costly at Rs 43 a pill, which is roughly 1/5th of its price in the US.

According to market sources, Glenmark's version costs around 30% less.