Hansenpharm Co. Begins Selling Generic Zyprexa in China
by Richard Daverman, PhD
ChinaBio Today
Chinese Pharma Won Patent Suit in 2006
Jiangsu Hansen Pharmaceutical Co. Ltd, known as Hansenpharm Co., has started to sell its generic version of Zyprexa (olanzapine), an anti-psychotic used widely to treat schizophrenia that is a billion-dollar seller for Lilly (LLY). In late 2006, Hansenpharm won a five-year-long Chinese patent suit over the drug and its method of production. It was the first time a Chinese company prevailed in a patent infringement lawsuit against a major international biopharma.
Hansenpharm introduced its generic version of Zyprexa at RMB 399 ($52.50) for a 28-pill supply. That is about half the price of the Lilly version, which sells for RMB 788 ($103).
Lilly received a patent in China for Zyprexa in 2001, filing the patent when Hansenpharm was on the brink of introducing its generic version to the Chinese market. Working with the Shanghai Institute of Pharmaceutical Industry, Hansenpharm developed the drug in 1998 and received production approval in late 2001. At the same time, Lilly was given a patent for Zyprexa, which included coverage for all production methods and effectively shut Hansenpharm out of the market.
In 2004, Hansenpharm prevailed in a suit that limited Lilly’s patent to the methods used by Lilly. The Shanghai Supreme Court ruled in December 2006 that the method used by Hansenpharm did not violate Lilly’s patent.
According to an uninvolved attorney, Lilly received only methods patents, not patents covering either production or use. Once Hansenpharm developed a new means of production, it could produce the drug without violating Lilly’s patent.
However, Hansenpharm’s bonanza will be short-lived because patents in China are good for only six years, and they are not renewable. So, Lilly’s patent is about to run out anyway. Soon, other biopharmas are expected to offer their own versions of the anti-psychotic drug.
Because patent coverage is so short, big pharmas are forced to play a dangerous game: they must hold off requesting a patent for as long as possible in the development process. That extends the useful period of coverage for a drug once it is marketed. But in doing so, they risk having another company snatch the patent from them.
Hansenpharm plans to sell the drug only in China; it does not intend to export generic Zyprexa. For Lilly, Zyprexa produced revenues of $4.4 billion in 2006.
Hansenpharm has registered capital of $61 million and 1200 workers and staff members on its payroll. It is one of the leading pharmaceutical companies in Jiangsu Province, located in East China.
RELATED READING:
- Beijing Bans Ten Illegally Advertised Drugs
- IPO for WuXi PharmaTech?
- Introgen Hints at Suit against Benda/SiBiono
ChinaBio Today is a regular contributor to BioHealth Investor
________________
ChinaBio Today
Chinese Pharma Won Patent Suit in 2006
Jiangsu Hansen Pharmaceutical Co. Ltd, known as Hansenpharm Co., has started to sell its generic version of Zyprexa (olanzapine), an anti-psychotic used widely to treat schizophrenia that is a billion-dollar seller for Lilly (LLY). In late 2006, Hansenpharm won a five-year-long Chinese patent suit over the drug and its method of production. It was the first time a Chinese company prevailed in a patent infringement lawsuit against a major international biopharma.
Hansenpharm introduced its generic version of Zyprexa at RMB 399 ($52.50) for a 28-pill supply. That is about half the price of the Lilly version, which sells for RMB 788 ($103).
Lilly received a patent in China for Zyprexa in 2001, filing the patent when Hansenpharm was on the brink of introducing its generic version to the Chinese market. Working with the Shanghai Institute of Pharmaceutical Industry, Hansenpharm developed the drug in 1998 and received production approval in late 2001. At the same time, Lilly was given a patent for Zyprexa, which included coverage for all production methods and effectively shut Hansenpharm out of the market.
In 2004, Hansenpharm prevailed in a suit that limited Lilly’s patent to the methods used by Lilly. The Shanghai Supreme Court ruled in December 2006 that the method used by Hansenpharm did not violate Lilly’s patent.
According to an uninvolved attorney, Lilly received only methods patents, not patents covering either production or use. Once Hansenpharm developed a new means of production, it could produce the drug without violating Lilly’s patent.
However, Hansenpharm’s bonanza will be short-lived because patents in China are good for only six years, and they are not renewable. So, Lilly’s patent is about to run out anyway. Soon, other biopharmas are expected to offer their own versions of the anti-psychotic drug.
Because patent coverage is so short, big pharmas are forced to play a dangerous game: they must hold off requesting a patent for as long as possible in the development process. That extends the useful period of coverage for a drug once it is marketed. But in doing so, they risk having another company snatch the patent from them.
Hansenpharm plans to sell the drug only in China; it does not intend to export generic Zyprexa. For Lilly, Zyprexa produced revenues of $4.4 billion in 2006.
Hansenpharm has registered capital of $61 million and 1200 workers and staff members on its payroll. It is one of the leading pharmaceutical companies in Jiangsu Province, located in East China.
RELATED READING:
- Beijing Bans Ten Illegally Advertised Drugs
- IPO for WuXi PharmaTech?
- Introgen Hints at Suit against Benda/SiBiono
ChinaBio Today is a regular contributor to BioHealth Investor
________________
posted by Nico at
6:20 PM
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