Merck & Co runs into trouble in Hungary
Hungarian drugs producer Richter Gedeon is to sue Merck & Co (New Jersey, US) for more than HUF3bn (US$14m) in damages over lost sales after winning a patent suit against the company earlier this year, according to chief executive Erik Bogsch.
Hungarian drugs producer Richter Gedeon is to sue Merck & Co (New Jersey, US) for more than HUF3bn (US$14m) in damages over lost sales after winning a patent suit against the company earlier this year, according to chief executive Erik Bogsch.
The Budapest Court of Appeal ruled on 17 January that Richter did not infringe a patent on generic osteoporosis drug Sedron and thus lifted an injunction obtained by Merck on 9 June 2005. Merck's patent was consequently ruled invalid in Hungary.
Richter is also claiming that patients and Hungary's National Health Insurance Fund (OEP) suffered losses of HUF115m ($554,000) and HUF1.5bn ($7.1m) respectively, given that its generic product is 30% cheaper than Merck's original.
Hungary's osteoporosis drug market is estimated at HUF5.5bn ($26m) per year, of which Richter expects to take around a 50% share. A preliminary ruling is not expected for at least twelve months while a final decision could take up to two years.