Dr Reddys falls after losing the Lunesta patent case in U.S.

The stock was down 1% at Rs 2,432 on the National Stock Exchange.

Dr Reddy’s Laboratories is trading lower by 1% at Rs 2,432 in early morning deals on NSE after the pharmaceutical company loses the Lunesta patent case in U.S.

Dainippon Sumitomo Pharma Co.’s Sunovion won an appeals court ruling that Dr. Reddy’s Laboratories Ltd.’s generic version of the sleep aid Lunesta would infringe a patent that expires next year.

The U.S. 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, which covers eszopiclone, the active ingredient in Lunesta.

Lunesta generated US $136 million in sales during the first quarter in North America and China, Osaka-based Dainippon Sumitomo said in a July 31’2013 statement.

The company has reached settlements with other companies over the sleep medicine, including one with Teva Pharmaceutical Industries Ltd. that enable low-cost versions to enter the market before the patent expires, says Ms. Sarabjit Kour Nangra (VP-Research, Pharma) of Angel Broking.

The stock opened at Rs 2,450 and touched a low of Rs 2,427 so far. A combined around 3,000 shares change hands on the counter in opening deals on NSE and BSE.